Market Newsdesk

July 29, 2021 8:03 am

Caladrius Biosciences to Host Second Quarter 2021 Financial Results Conference Call on Thursday, August 5, 2021 at 4:30 p.m. Eastern Time

BASKING RIDGE, N.J., July 29, 2021 (GLOBE NEWSWIRE) — Caladrius Biosciences, Inc. (Nasdaq: CLBS) (“Caladrius” or the “Company”), a clinical-stage biopharmaceutical company dedicated to the development of cellular therapies designed to reverse disease, today announced that the Company will report its financial results for the three months ended June 30, 2021, on Thursday, August 5, 2021, at 4:30 p.m. (ET). To join the live conference call, please refer to the dial-in information provided below.

Dial-in information:

U.S. Toll-Free: 844-369-8774
International: 862-298-0844

A live webcast of the call will be available on the Caladrius website under the Investors & News section. A replay of the webcast will also be available for 90 days following the conclusion of the call.

For those unable to participate on the live conference call, an audio replay will be available that day starting at 7:30 p.m. (ET) until August 19, 2021, by dialing 877-481-4010 (U.S. Toll-Free) or 919-882-2331 (International) and by entering the replay passcode: 42180.

About Caladrius Biosciences

Caladrius Biosciences, Inc. is a clinical-stage biopharmaceutical company dedicated to the development of cellular therapies designed to reverse disease. We are developing first-in-class cell therapy products based on the finely tuned mechanisms for self-repair that exist in the human body. Our technology leverages and enables these mechanisms in the form of specific cells, using formulations and modes of delivery unique to each medical indication.

The Company’s current product candidates include: CLBS16, the subject of both a recently completed positive Phase 2a study and a newly initiated Phase 2b study (www.freedom-trial.com) in the U.S. for the treatment of coronary microvascular dysfunction (“CMD”); CLBS12 (HONEDRA® in Japan), recipient of orphan designation for Buerger’s Disease in the U.S. as well as SAKIGAKE designation and eligible for early conditional approval in Japan for the treatment of critical limb ischemia (“CLI”) and Buerger’s Disease based on the results of an ongoing clinical trial; CLBS201, designed to assess the safety and efficacy of CD34+ cell therapy as a treatment for diabetic kidney disease (“DKD”); and OLOGO™ (CLBS14), a Regenerative Medicine Advanced Therapy (“RMAT”) designated therapy for which the Company is in discussion with the FDA to finalize a Phase 3 protocol of reduced size and scope for a confirmatory trial in subjects with no-option refractory disabling angina (“NORDA”). For more information on the Company, please visit www.caladrius.com.

Contact:

Investors:
Caladrius Biosciences, Inc.
John Menditto
Vice President, Investor Relations and Corporate Communications
Phone: 908-842-0084
Email: [email protected]

Media:
Real Chemistry
Rachel Girard
Real Chemistry
Phone: 401-477-4030
Email: [email protected]

July 29, 2021 8:03 am

Perficient Reports Second Quarter 2021 Results

Perficient Reports Second Quarter 2021 Results

~ Revenues Up 26%; Company Raises Full Year Revenue and Earnings Guidance ~

ST. LOUIS–(BUSINESS WIRE)–Perficient, Inc. (Nasdaq: PRFT) (“Perficient”), the leading global digital consultancy transforming the world’s largest enterprises and biggest brands, today reported its financial results for the quarter ended June 30, 2021.

Financial Highlights

For the quarter ended June 30, 2021:

Revenues increased 26% to $184.1 million from $146.3 million in the second quarter of 2020;
Net income increased 151% to $16.6 million from $6.6 million in the second quarter of 2020, reflecting, among other things, higher gross margin, lower selling, general and administrative expenses as a percentage of revenue, lower acquisition costs, and lower adjustments to fair value of contingent consideration;
GAAP earnings per share results on a fully diluted basis increased 145% to $0.49 from $0.20 in the second quarter of 2020, primarily as a result of the increase in net income discussed above;
Adjusted earnings per share results (a non-GAAP measure; see attached schedule, which reconciles to GAAP earnings per share) on a fully diluted basis increased 47% to $0.84 from $0.57 in the second quarter of 2020; and
Adjusted EBITDA^{(a non-GAAP measure; see attached schedule, which reconciles to GAAP net income) increased 48% to $39.0 million from $26.4 million in the second quarter of 2020.}

“Perficient’s strong second quarter performance again underscores that the world’s largest enterprises and biggest brands are gravitating toward our differentiated approach and embracing our flexible and compelling delivery model which blends global efficiency with high-touch, strategic leadership and project management,” said Jeffrey Davis, chairman and CEO. “We’re taking share, adding new customers, expanding existing relationships and building our company faster than ever before.”

Other Highlights

Among other recent achievements, Perficient:

Grew offshore revenue organically 75% during the quarter – with total offshore revenue growth up 124%;
Was named the 2021 Americas recipient of Sitecore’s Partner Award for Excellence in Solution Delivery, as well as an Optimizely Premier Platinum partner – one of just three partners in North America with this distinction, and a global finalist for the Microsoft Healthcare Partner of the Year award;
Announced the graduation of 22 women from the inaugural Perficient Bright Paths Program, a majority of whom are working at Perficient in the software development and engineering field;
Was included in “The Gartner Digital Commerce Vendor Guide, 2021” as a digital commerce service provider offering multiple digital commerce implementation services, and in the “Gartner Report: Vendor Rating for Salesforce” as a key partner for manufacturing cloud; and
Received 2021 best workplace distinctions in St. Louis, Chicago, Atlanta, Southern California, and Minnesota.

Business Outlook

The following statements are based on current expectations. These statements are forward-looking and actual results may differ materially. See “Safe Harbor Statement” below.

Perficient expects its third quarter 2021 revenue to be in the range of $186 million to $191 million. Third quarter GAAP earnings per share is expected to be in the range of $0.49 to $0.52. Third quarter adjusted earnings per share (a non-GAAP measure; see attached schedule which reconciles to GAAP earnings per share guidance) is expected to be in the range of $0.83 to $0.86.

Perficient is raising its full year 2021 revenue guidance range from $685 million to $710 million to $723 million to $738 million, raising its 2021 GAAP earnings per share guidance range from $1.72 to $1.87 to $1.93 to $2.05 and raising its 2021 adjusted earnings per share (a non-GAAP measure; see attached schedule which reconciles to GAAP earnings per share guidance) guidance range from $3.00 to $3.15 to $3.20 to $3.30.

Conference Call Details

Perficient will host a conference call regarding second quarter financial results today at 11 a.m. Eastern.

WHAT: Perficient Reports Second Quarter 2021 Results

WHEN: July 29, 2021,at11 a.m. Eastern

CONFERENCE CALL NUMBERS: 855-246-0403 (U.S. and Canada); 414-238-9806 (International)

PARTICIPANT PASSCODE: 3890138

REPLAY TIMES: July 29, 2021, at 2 p.m. Eastern, through Thursday, Aug. 5, 2021, at 2 p.m. Eastern

REPLAY NUMBER: 855-859-2056 (U.S. and Canada); 404-537-3406 (International)

REPLAY PASSCODE: 3890138

About Perficient

Perficient is the leading global digital consultancy. We imagine, create, engineer, and run digital transformation solutions that help our clients exceed customers’ expectations, outpace competition, and grow their business. With unparalleled strategy, creative, and technology capabilities, we bring big thinking and innovative ideas, along with a practical approach to help the world’s largest enterprises and biggest brands succeed. Traded on the Nasdaq Global Select Market, Perficient is a member of the Russell 2000 index and the S&P SmallCap 600 index. For more information, visit www.perficient.com.

Safe Harbor Statement

Some of the statements contained in this news release that are not purely historical statements discuss future expectations or state other forward-looking information related to financial results and business outlook for 2021. Those statements are subject to known and unknown risks, uncertainties, and other factors that could cause the actual results to differ materially from those contemplated by the statements. The forward-looking information is based on management’s current intent, belief, expectations, estimates, and projections regarding our company and our industry. You should be aware that those statements only reflect our predictions. Actual events or results may differ substantially. Important factors that could cause our actual results to be materially different from the forward-looking statements include (but are not limited to) those disclosed under the heading “Risk Factors” in our most recently filed annual report on Form 10-K, and the following, many of which are, or may be, amplified by the novel coronavirus (COVID-19) pandemic:

(1)

the possibility that our actual results do not meet the projections and guidance contained in this news release;

(2)

the impact of the general economy and economic and political uncertainty on our business;

(3)

the impact of the COVID-19 pandemic on our business;

(4)

risks associated with potential changes to federal, state, local and foreign laws, regulations, and policies;

(5)

risks associated with the operation of our business generally, including:

a. client demand for our services and solutions;

b. effectively competing in a highly competitive market;

c. risks from international operations including fluctuations in exchange rates;

d. adapting to changes in technologies and offerings;

e. obtaining favorable pricing to reflect services provided;

f. risk of loss of one or more significant software vendors;

g. maintaining a balance of our supply of skills and resources with client demand;

h. changes to immigration policies;

i. protecting our clients’ and our data and information;

j. changes to tax levels, audits, investigations, tax laws or their interpretation;

k. making appropriate estimates and assumptions in connection with preparing our consolidated financial statements; and

l. maintaining effective internal controls;

(6)

risks associated with managing growth organically and through acquisitions;

(7)

risks associated with servicing our debt, the potential impact on the value of our common stock from the conditional conversion features of our debt and the associated convertible note hedge transactions;

(8)

legal liabilities, including intellectual property protection and infringement or the disclosure of personally identifiable information; and

(9)

the risks detailed from time to time within our filings with the Securities and Exchange Commission.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. This cautionary statement is provided pursuant to Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements in this release are made only as of the date hereof and we undertake no obligation to update publicly any forward-looking statement for any reason, even if new information becomes available or other events occur in the future.

Perficient, Inc.

Unaudited Consolidated Statements of Operations

(in thousands, except share and per share information)

Three Months Ended

June 30,

Six Months Ended

June 30,

2021

2020

2021

2020

Revenues

Services excluding reimbursable expenses

$

181,213

$

144,306

$

347,689

$

285,314

Reimbursable expenses

2,562

1,530

4,816

5,924

Total services

183,775

145,836

352,505

291,238

Software and hardware

361

503

972

663

Total revenues

184,136

146,339

353,477

291,901

Cost of revenues (exclusive of depreciation and amortization, shown separately below)

Cost of services

110,942

89,164

214,903

180,663

Stock compensation

2,238

1,991

4,339

3,709

Total cost of revenues

113,180

91,155

219,242

184,372

Selling, general and administrative

34,146

30,811

64,935

61,104

Stock compensation

3,278

3,065

6,468

5,993

Total selling, general and administrative

37,424

33,876

71,403

67,097

Depreciation

1,615

1,317

3,075

2,605

Amortization

6,333

4,398

13,385

8,320

Acquisition costs

—

1,787

68

3,600

Adjustment to fair value of contingent consideration

(510

)

2,067

4

1,732

Income from operations

26,094

11,739

46,300

24,175

Net interest expense

3,367

2,061

6,663

3,987

Net other expense

9

(15

)

131

(8

)

Income before income taxes

22,718

9,693

39,506

20,196

Provision for income taxes

6,145

3,084

9,340

4,613

Net income

$

16,573

$

6,609

$

30,166

$

15,583

Basic net income per share

$

0.52

$

0.21

$

0.95

$

0.49

Diluted net income per share

$

0.49

$

0.20

$

0.90

$

0.48

Shares used in computing basic net income per share

31,922

31,888

31,893

31,763

Shares used in computing diluted net income per share

33,867

32,377

33,500

32,444

Perficient, Inc.

Condensed Consolidated Balance Sheets

(in thousands, except share and per share information)

June 30, 2021

(unaudited)

December 31, 2020

Assets

Current assets:

Cash and cash equivalents

$

86,686

$

83,204

Accounts receivable, net

149,718

133,085

Prepaid expenses

6,354

5,575

Other current assets

5,795

4,646

Total current assets

248,553

226,510

Property and equipment, net

12,124

11,902

Operating lease right-of-use assets

35,056

38,539

Goodwill

420,508

427,928

Intangible assets, net

48,937

63,571

Other non-current assets

21,017

17,311

Total assets

$

786,195

$

785,761

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

26,167

$

25,613

Other current liabilities

87,683

103,267

Total current liabilities

113,850

128,880

Long-term debt, net

188,667

183,624

Operating lease liabilities

25,871

29,098

Other non-current liabilities

45,814

50,081

Total liabilities

374,202

391,683

Stockholders’ equity:

Preferred stock

—

—

Common stock

51

50

Additional paid-in capital

470,218

459,866

Accumulated other comprehensive (loss) income

(1,813

)

3,746

Treasury stock

(306,270

)

(289,225

)

Retained earnings

249,807

219,641

Total stockholders’ equity

411,993

394,078

Total liabilities and stockholders’ equity

$

786,195

$

785,761

About Non-GAAP Financial Information

This news release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management uses each measure, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (“GAAP”), please see the section entitled “About Non-GAAP Financial Measures” and the accompanying tables entitled “Reconciliation of GAAP to Non-GAAP Measures.”

About Non-GAAP Financial Measures

Perficient provides non-GAAP financial measures for adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock compensation, acquisition costs and adjustment to fair value of contingent consideration), adjusted net income, and adjusted earnings per share data as supplemental information regarding Perficient’s business performance. Perficient believes that these non-GAAP financial measures are useful to investors because they provide investors with a better understanding of Perficient’s past financial performance and future results. Perficient’s management uses these non-GAAP financial measures when it internally evaluates the performance of Perficient’s business and makes operating decisions, including internal operating budgeting, performance measurement, and the calculation of bonuses and discretionary compensation. Management excludes stock-based compensation related to restricted stock awards, the amortization of intangible assets, amortization of debt discounts and issuance costs related to convertible senior notes, acquisition costs, adjustments to the fair value of contingent consideration, net other income and expense, the impact of other infrequent or unusual transactions, and income tax effects of the foregoing, when making operational decisions.

Perficient believes that providing the non-GAAP financial measures to its investors is useful because it allows investors to evaluate Perficient’s performance using the same methodology and information used by Perficient’s management. Specifically, adjusted net income is used by management primarily to review business performance and determine performance-based incentive compensation for executives and other employees. Management uses adjusted EBITDA to measure operating profitability, evaluate trends, and make strategic business decisions.

Non-GAAP financial measures are subject to inherent limitations because they do not include all of the expenses included under GAAP and because they involve the exercise of discretionary judgment as to which charges are excluded from the non-GAAP financial measure. However, Perficient’s management compensates for these limitations by providing the relevant disclosure of the items excluded in the calculation of adjusted EBITDA, adjusted net income, and adjusted earnings per share. In addition, some items that are excluded from adjusted net income and adjusted earnings per share can have a material impact on cash. Management compensates for these limitations by evaluating the non-GAAP measure together with the most directly comparable GAAP measure. Perficient has historically provided non-GAAP financial measures to the investment community as a supplement to its GAAP results to enable investors to evaluate Perficient’s business performance in the way that management does. Perficient’s definition may be different from similar non-GAAP financial measures used by other companies and/or analysts.

The non-GAAP adjustments, and the basis for excluding them, are outlined below:

Amortization

Perficient has incurred expense on amortization of intangible assets primarily related to various acquisitions. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that eliminating this expense from its non-GAAP financial measures is useful to investors because the amortization of intangible assets can be inconsistent in amount and frequency, and is significantly impacted by the timing and magnitude of Perficient’s acquisition transactions, which also vary substantially in frequency from period to period.

Acquisition Costs

Perficient incurs transaction costs related to merger and acquisition-related activities which are expensed in its GAAP financial statements. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that excluding these expenses from its non-GAAP financial measures is useful to investors because these are expenses associated with each transaction and are inconsistent in amount and frequency causing comparison of current and historical financial results to be difficult.

Adjustment to Fair Value of Contingent Consideration

Perficient is required to remeasure its contingent consideration liability related to acquisitions each reporting period until the contingency is settled. Any changes in fair value are recognized in earnings. Management excludes these items for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share. Perficient believes that excluding these adjustments from its non-GAAP financial measures is useful to investors because they are related to acquisitions and are inconsistent in amount and frequency from period to period.

Amortization of Debt Discount and Debt Issuance Costs

On August 14, 2020, Perficient issued $230.0 million aggregate principal amount of 1.250% Convertible Senior Notes due 2025, and on September 11, 2018, Perficient issued $143.8 million aggregate principal amount of 2.375% Convertible Senior Notes due 2023 (the “2025 Notes” and the “2023 Notes,” respectively, and together, the “Notes”) in private placements to qualified institutional purchasers. In accordance with accounting for debt with conversions and other options, Perficient bifurcated the principal amount of the Notes into liability and equity components. The resulting debt discounts are being amortized to interest expense over the period from the issuance dates through the respective contractual maturity dates. Issuance costs related to the Notes were allocated pro rata based on the relative fair values of the liability and equity components. Issuance costs attributable to the liability component of the Notes, in addition to issuance costs related to Perficient’s credit agreement, are being amortized to interest expense over their respective terms. Perficient believes that excluding these non-cash expenses from its non-GAAP financial measures is useful to investors because the expenses are not reflective of the company’s business performance.

Foreign Exchange Loss (Gain)

Non-operating foreign currency exchange gains and losses, inclusive of gains and losses on related foreign exchange forward contracts not designated as hedging instruments for accounting purposes, are reported in net other expense (income) in our consolidated statements of operations. As our operations expands into countries outside of the United States, and in particular as a result of our 2020 acquisition of Productora de Software S.A.S., based in Colombia, foreign exchange gains and losses have and will become increasingly material. Perficient believes that excluding these gains and losses from its non-GAAP financial measures is useful to investors because foreign exchange gains and losses will vary as the underlying currencies fluctuate, which makes it difficult to compare current and historical results.

Stock Compensation

Perficient incurs stock-based compensation expense under Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation – Stock Compensation. Perficient excludes stock-based compensation expense and the related tax effects for the purposes of calculating adjusted EBITDA, adjusted net income, and adjusted earnings per share because stock-based compensation is a non-cash expense, which Perficient believes is not reflective of its business performance. The nature of stock-based compensation expense also makes it very difficult to estimate prospectively, since the expense will vary with changes in the stock price and market conditions at the time of new grants, varying valuation methodologies, subjective assumptions, and different award types, making the comparison of current results with forward-looking guidance potentially difficult for investors to interpret. The tax effects of stock-based compensation expense may also vary significantly from period to period, without any change in underlying operational performance, thereby obscuring the underlying profitability of operations relative to prior periods. Perficient believes that non-GAAP measures of profitability, which exclude stock-based compensation, are widely used by analysts and investors.

Dilution Offset from Convertible Note Hedge Transactions

It is Perficient’s current intent to settle conversions of the Notes through combination settlement, which involves repayment of the principal portion in cash and any excess of the conversion value over the principal amount in shares of our common stock. We exclude the shares that are issuable upon conversions of the Notes because we expect that the dilution from such shares will be offset by the convertible note hedge transactions entered into in August 2020 and September 2018 in connection with the issuance of the Notes.

Perficient, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(unaudited)

(in thousands, except per share data)

Three Months Ended

June 30,

Six Months Ended

June 30,

2021

2020

2021

2020

GAAP Net Income

$

16,573

$

6,609

$

30,166

$

15,583

Adjustments:

Provision for income taxes

6,145

3,084

9,340

4,613

Amortization

6,333

4,398

13,385

8,320

Acquisition costs

—

1,787

68

3,600

Adjustment to fair value of contingent consideration

(510

)

2,067

4

1,732

Amortization of debt discount and issuance costs

2,562

1,215

5,090

2,416

Foreign exchange loss (gain)

8

(12

)

136

2

Stock compensation

5,516

5,056

10,807

9,702

Adjusted Net Income Before Tax

36,627

24,204

68,996

45,968

Adjusted income tax (1)

9,230

5,906

17,318

11,216

Adjusted Net Income

$

27,397

$

18,298

$

51,678

$

34,752

GAAP Earnings Per Share (diluted)

$

0.49

$

0.20

$

0.90

$

0.48

Adjusted Earnings Per Share (diluted)

$

0.84

$

0.57

$

1.58

$

1.07

Shares used in computing GAAP Earnings Per Share (diluted)

33,867

32,377

33,500

32,444

Dilution offset from convertible note hedge transactions

(1,251

)

—

(894

)

(77

)

Shares used in computing Adjusted Earnings Per Share (diluted)

32,616

32,377

32,606

32,367

(1) The estimated adjusted effective tax rate of 25.2% and 24.4% for the three months ended June 30, 2021 and 2020, respectively, and 25.1% and 24.4% for the six months ended June 30, 2021 and 2020, respectively, has been used to calculate the provision for income taxes for non-GAAP purposes.

Perficient, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(unaudited)

(in thousands)

Three Months Ended

June 30,

Six Months Ended

June 30,

2021

2020

2021

2020

GAAP Net Income

$

16,573

$

6,609

$

30,166

$

15,583

Adjustments:

Provision for income taxes

6,145

3,084

9,340

4,613

Net interest expense

3,367

2,061

6,663

3,987

Net other expense (income)

9

(15

)

131

(8

)

Depreciation

1,615

1,317

3,075

2,605

Amortization

6,333

4,398

13,385

8,320

Acquisition costs

—

1,787

68

3,600

Adjustment to fair value of contingent consideration

(510

)

2,067

4

1,732

Stock compensation

5,516

5,056

10,807

9,702

Adjusted EBITDA (1)

$

39,048

$

26,364

$

73,639

$

50,134

(1) Adjusted EBITDA is a non-GAAP performance measure and is not intended to be a performance measure that should be regarded as an alternative to or more meaningful than either GAAP operating income or GAAP net income. Adjusted EBITDA measures presented may not be comparable to similarly titled measures presented by other companies.

Perficient, Inc.

Reconciliation of GAAP to Non-GAAP Measures

(unaudited)

Q3 2021

Full Year 2021

Low end of

adjusted goal

High end of

adjusted goal

Low end of

adjusted goal

High end of

adjusted goal

GAAP EPS

$

0.49

$

0.52

$

1.93

$

2.05

Non-GAAP adjustment (1):

Non-GAAP reconciling items

0.42

0.42

1.77

1.76

Tax effect of reconciling items

(0.08

)

(0.08

)

(0.50

)

(0.51

)

Adjusted EPS

$

0.83

$

0.86

$

3.20

$

3.30

(1) Non-GAAP adjustment represents the impact of amortization expense, stock compensation, amortization of debt discount and issuance costs, foreign exchange gains and losses, acquisition costs, and adjustments to fair value of contingent consideration, net of the tax effect of these adjustments, divided by adjusted fully diluted shares. Perficient currently expects its Q3 2021 and full year 2021 GAAP effective income tax rate to be approximately 28% and 22%, respectively. The Company’s estimates of GAAP and adjusted fully diluted shares for 2021 are included in the following table. These estimates could be affected by share repurchases, shares issued in conjunction with future acquisitions and the potential impact from the conditional conversion features of our debt.

Q3 2021

Full Year 2021

(in millions)

Low end of

adjusted goal

High end of

adjusted goal

Low end of

adjusted goal

High end of

adjusted goal

GAAP Fully Diluted Shares

35.0

34.3

34.3

34.0

Non-GAAP adjustment (2):

Dilution offset from convertible note hedge transactions

(2.0

)

(1.7

)

(1.6

)

(1.4

)

Adjusted Fully Diluted Shares

33.0

32.6

32.7

32.6

(2) Non-GAAP adjustment represents the exclusion of shares that are issuable upon conversion of our convertible notes due to the expectation that such shares will be offset by the convertible note hedge transactions entered into in August 2020 and September 2018.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005591/en/

Bill Davis, Perficient, 314-529-3555

[email protected]

KEYWORDS: United States North America Missouri

INDUSTRY KEYWORDS: Technology Consulting Marketing Other Technology Communications Professional Services Software Internet Data Management Search Engine Marketing

MEDIA:

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Posted on July 29, 2021 8:02 am
Independent Bank Corporation Reports 2021 Second Quarter Results

GRAND RAPIDS, Mich., July 29, 2021 (GLOBE NEWSWIRE) — Independent Bank Corporation (NASDAQ: IBCP) reported second quarter 2021 net income of $12.4 million, or $0.56 per diluted share, versus net income of $14.8 million, or $0.67 per diluted share, in the prior-year period. For the six months ended June 30, 2021, the Company reported net income of $34.4 million, or $1.56 per diluted share, compared to net income of $19.6 million, or $0.88 per diluted share, in the prior-year period. The decline in second quarter 2021 earnings as compared to 2020 primarily reflects a decrease in non-interest income and an increase in non-interest expense that were partially offset by an increase in net interest income and decreases in the provision for credit losses and income tax expense. The increase in year-to-date 2021 earnings as compared to 2020 primarily reflects increases in net interest income and non-interest income and a decrease in the provision for credit losses that were partially offset by increases in non-interest expense and income tax expense.

Highlights for the second quarter of 2021 include:

Annualized return on average assets and on average equity of 1.12% and 12.78%, respectively;

An increase in net interest income of 3.1% over the second quarter of 2020;

Net gains on mortgage loans of $9.1 million and total mortgage loan origination volume of $473.7 million;

Net growth in portfolio loans of $30.3 million (or 4.4% annualized);

Continued strong asset quality metrics as evidenced by net loan recoveries during the quarter as well as a low level of non-performing loans and non-performing assets; and

The payment of a 21 cent per share dividend on common stock on May 14, 2021.

Highlights for the first six months of 2021 include:

Increases in net income and diluted earnings per share of 75.8% and 77.3%, respectively;

Annualized return on average assets and on average equity of 1.60% and 18.06%, respectively;

Net gains on mortgage loans of $21.9 million and total mortgage loan origination volume of $982.7 million;

Net growth in portfolio loans of $80.9 million (or 6.0% annualized);

Net growth in deposits of $225.1 million (or 12.5% annualized).

Significant items impacting comparable quarterly and year to date 2021 and 2020 results include the following:

Changes in the fair value due to price of capitalized mortgage loan servicing rights (the “MSR Changes”) of a negative $2.4 million ($0.09 per diluted share, after taxes) and a positive $2.2 million ($0.08 per diluted share, after taxes) for the three- and six-months ended June 30, 2021, respectively, as compared to a negative $2.9 million ($0.10 per diluted share, after taxes) and a negative $8.9 million ($0.31 per diluted share, after taxes) for the three- and six-months ended June 30, 2020, respectively.

William B. (“Brad”) Kessel, the President and Chief Executive Officer of Independent Bank Corporation, commented: “We are pleased to report a solid financial performance for the second quarter and first six months of 2021. Economic activity and business conditions have improved in our markets. Earning asset growth, including portfolio loans, has resulted in an increase in net interest income in 2021 compared to the year ago period. Mortgage loan origination activity continues to be strong. Asset quality metrics have been exceptional in 2021. Our ratio of non-performing assets to total assets declined to 0.12% at June 30, 2021, and COVID related loan forbearance balances decreased by 40.5% during the first six months of 2021, which represents only 0.5% of our total loans at June 30, 2021.”

Kessel added: “During the second quarter of 2021, we also completed our conversion to a new modern core platform with flexible application processing interfaces (APIs). This change now allows faster integration with new technology, real-time processing capabilities, and better access to our data and decision management using that data. Initial feedback from our customer base includes much excitement about ONE Wallet, our new mobile and online platform for consumer and business clients. This platform provides customers with the ability to open new accounts and apply for loans online, along with enhanced transfer, bill pay, and self-service capabilities. In addition, ONE Wallet+ enables our customers to monitor all of their finances in one location and provides budgeting and spending analytical tools. ONE Wallet+ has experienced a very strong adoption rate.”

Kessel concluded: “As we look ahead to the balance of 2021 and beyond, we are mindful that although economic conditions have improved, challenges from the pandemic remain. However, we are confident of our continued ability to effectively respond to these challenges and remain optimistic about our future.”

Operating Results

The Company’s net interest income totaled $31.4 million during the second quarter of 2021, an increase of $0.9 million, or 3.1% from the year-ago period, and up $1.1 million, or 3.7%, from the first quarter of 2021. The Company’s tax equivalent net interest income as a percent of average interest-earning assets (the “net interest margin”) was 3.02% during the second quarter of 2021, compared to 3.36% in the year-ago period, and 3.05% in the first quarter of 2021. The year-over-year quarterly increase in net interest income was due to an increase in average interest-earning assets that was partially offset by a decline in the net interest margin. Average interest-earning assets were $4.22 billion in the second quarter of 2021, compared to $3.66 billion in the year ago quarter and $4.05 billion in the first quarter of 2021.

For the first six months of 2021, net interest income totaled $61.7 million, an increase of $1.0 million, or 1.7% from the first half of 2020. The Company’s net interest margin for the first six months of 2021 was 3.04% compared to 3.49% in 2020. The increase in net interest income for the first six months of 2021 compared to 2020 was also due to an increase in average interest-earning assets that was partially offset by a decline in the net interest margin.

Due principally to the economic impact of COVID-19, the Federal Reserve has taken a variety of actions to stimulate the economy, including significantly lowering short-term interest rates. These lower interest rates combined with a higher allocation to lower yielding securities available for sale has placed continued pressure on the Company’s net interest margin.

In addition, commercial loan balances, interest income and yields have been impacted by Paycheck Protection Program (“PPP”) lending activity. PPP lending activity is summarized in the following tables:

PPP – Round 1

At or for the three months ended 6/30/2021 3/31/2021 6/30/2020

# (000’s) # (000’s) # (000’s)

Loans outstanding at period end 298 $ 42,315 698 $ 105,934 2,012 $ 259,351

Average loans outstanding – 78,747 – 136,206 – 191,061

Cumulative forgiveness applications submitted 1,882 231,715 1,477 183,346 – –

Cumulative forgiveness applications approved 1,870 229,429 1,354 158,046 – –

Net fees accreted into interest income – 981 – 1,853 – 977

Net unaccreted fees at period end – 381 – 1,362 – 7,736

Average loan yield – 5.98 % – 6.43 % – 3.05 %

Note: PPP – Round 1 loan activity began in the second quarter of 2020.

PPP – Round 2

At or for the three months ended 6/30/2021 3/31/2021

# (000’s) # (000’s)

Loans outstanding at period end 1,409 $ 129,573 1,250 $ 128,240

Average loans outstanding – 133,239 – 72,011

Cumulative forgiveness applications submitted 166 8,843 – –

Cumulative forgiveness applications approved 164 8,828 – –

Net fees accreted into interest income – 832 – 229

Net unaccreted fees at period end – 5,429 – 5,454

Average loan yield – 3.50 % – 2.25 %

Note: PPP – Round 2 loan activity began in the first quarter of 2021.

Non-interest income totaled $14.8 million and $41.2 million, respectively, for the second quarter and first six months of 2021, compared to $20.4 million and $31.4 million in the respective comparable year ago periods. These changes were primarily due to variances in mortgage banking related revenues (net gains on mortgage loans and mortgage loan servicing, net).

Net gains on mortgage loans in the second quarters of 2021 and 2020, were approximately $9.1 million and $17.6 million, respectively. For the first six months of 2021, net gains on mortgage loans totaled $21.9 million compared to $26.5 million in 2020. The decrease in net gains on mortgage loans was primarily due to a decline in mortgage loan sales volume in 2021, lower profit margins on mortgage loan sales, and fair value adjustments on the mortgage loan pipeline.

Mortgage loan servicing, net, generated a loss of $2.0 million and a loss of $3.0 million in the second quarters of 2021 and 2020, respectively. For the first six months of 2021 and 2020, mortgage loan servicing, net, generated income of $3.2 million and a loss of $8.3 million, respectively. The significant variances in mortgage loan servicing, net are primarily due to changes in the fair value of capitalized mortgage loan servicing rights associated with changes in mortgage loan interest rates and expected future prepayment levels. Mortgage loan servicing, net activity is summarized in the following table:

Three Months Ended Six Months Ended

6/30/2021 6/30/2020 6/30/2021 6/30/2020

Mortgage loan servicing, net: (Dollars in thousands)

Revenue, net $ 1,876 $ 1,646 $ 3,786 $ 3,319

Fair value change due to price (2,426 ) (2,921 ) 2,214 (8,852 )

Fair value change due to pay-downs (1,412 ) (1,747 ) (2,795 ) (2,789 )

Total $ (1,962 ) $ (3,022 ) $ 3,205 $ (8,322 )

Net gain on securities available for sale totaled zero and $1.4 million in second quarter and first six months of 2021, respectively, compared to zero and $0.3 million in the prior year second quarter and first six months, respectively. The increased gain that occurred in the first quarter of 2021 was related to the divestiture of a group of mortgage backed securities.

Non-interest expenses totaled $32.5 million in the second quarter of 2021, compared to $27.3 million in the year-ago period. For the first six months of 2021, non-interest expenses totaled $62.6 million versus $56.1 million in 2020. These year-over-year increases in non-interest expense are primarily due to increases in compensation and employee benefits, data processing, interchange and conversion related expenses. The increase in compensation and employee benefits in 2021 is due to several factors, including, wage increases that were generally effective at the start of the year, increased overtime primarily associated with a data processing conversion, a higher accrual for incentive compensation (due to expected actual performance compared to targets), higher payroll taxes due to the increase in compensation and higher health care insurance costs (these costs during the first six months of 2020 were unusually low due to the various COVID related lock-downs). In addition, the second quarter and first six months of 2021 included $1.1 million and $1.4 million, respectively, of expenses related to the Company’s core data processing conversion (this conversion was completed in May 2021) compared to $0.3 million and $0.4 million, respectively, in the comparable periods in 2020. The second quarter and first six months of 2020 also included $0.4 million of expenses (primarily write-downs of fixed assets and leases) related to the closures of six bank branch offices that were completed in the third quarter of 2020.

The Company recorded an income tax expense of $2.7 million and $7.8 million in the second quarter and first six months of 2021, respectively. This compares to an income tax expense of $3.5 million and $4.5 million in the second quarter and first six months of 2020, respectively. The changes in income tax expense principally reflect changes in pre-tax earnings in 2021 relative to 2020.

Asset Quality

A breakdown of loan forbearance totals by loan type is as follows:

Loan Type 6/30/2021 3/31/2021 % change vs. prior quarter

# $ (000’s) % of
portfolio # $ (000’s) % of
portfolio # $

Commercial – $ – 0.0 % – $ – 0.0 % none none

Mortgage 82 12,416 1.2 % 111 15,263 1.5 % (26.1 )% (18.7 )%

Installment 18 327 0.1 % 32 537 0.1 % (43.8 )% (39.1 )%

Total 100 $ 12,743 0.5 % 143 $ 15,800 0.6 % (30.1 )% (19.3 )%

Loans serviced for others 150 $ 20,231 0.6 % 205 $ 26,975 0.9 % (26.8 )% (25.0 )%

Note: The % of portfolio is based on the dollar amount of forbearances to the total for the loan portfolio segment.

A breakdown of non-performing loans⁽¹⁾ by loan type is as follows:

Loan Type 6/30/2021 12/31/2020 6/30/2020

(Dollars in thousands)

Commercial $ 242 $ 1,440 $ 4,886

Mortgage 4,941 6,353 7,455

Installment 362 519 602

Subtotal 5,545 8,312 12,943

Less – government guaranteed loans 427 439 604

Total non-performing loans $ 5,118 $ 7,873 $ 12,339

Ratio of non-performing loans to total portfolio loans 0.18 % 0.29 % 0.43 %

Ratio of non-performing assets to total assets 0.12 % 0.21 % 0.34 %

Ratio of the allowance for credit losses to non-performing loans 897.34 % 450.01 % 279.60 %

(1) Excludes loans that are classified as “troubled debt restructured” that are still performing.

Non-performing loans decreased $2.8 million from December 31, 2020, as all loan categories have declined, reflecting improving economic conditions and the Company’s collection efforts.

The provision for credit losses was a credit of $1.4 million and an expense of $5.2 million in the second quarters of 2021 and 2020, respectively. The provision for credit losses was a credit of $1.9 million and an expense of $11.9 million in the first six months of 2021 and 2020, respectively. The quarterly and year-to-date decreases in the provision for credit losses in 2021 compared to 2020, were primarily the result of a decline in the balance of loans individually evaluated in the allowance for credit losses, slightly lower reserve allocations (reflecting an improvement in economic forecasts, particularly for lower unemployment levels) for pooled loans evaluated in the allowance for credit losses and a decrease in the adjustment to allocations based on subjective factors. In particular, the higher year-to-date provision for credit losses in 2020 included an $8.7 million (or 98.2%) increase in the qualitative/subjective portion of the allowance for credit losses. That increase in 2020 principally reflected the unique challenges and prevailing economic uncertainty resulting from the COVID-19 pandemic and the potential impact on the loan portfolio.

The Company recorded loan net recoveries of $0.6 million and loan net charge-offs of $3.2 million in the second quarters of 2021 and 2020, respectively. For the first six months of 2021 and 2020, the Company recorded loan net recoveries of $0.7 million and loan net charge-offs of $3.6 million, respectively.

The allowance for credit losses totaled $45.9 million at June 30, 2021 compared to $35.4 million at December 31, 2020. The increase from December 31, 2020 is attributed to the adoption of Financial Accounting Standards Board Accounting Standards Update 2016-13, Financial Instruments — Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“CECL”) on January 1, 2021. The impact of the adoption of CECL was an increase in the allowance for credit losses of $11.7 million. At June 30, 2021, the allowance for credit losses equaled 1.63% of total portfolio loans (1.73% when excluding PPP loans) under CECL, compared to 1.30% of total portfolio loans (1.38% when excluding PPP loans) at December 31, 2020, under the probable incurred loss methodology.

Balance Sheet, Liquidity and Capital

Total assets were $4.46 billion at June 30, 2021, an increase of $257.3 million from December 31, 2020. Loans, excluding loans held for sale, were $2.81 billion at June 30, 2021, compared to $2.73 billion at December 31, 2020. Deposits totaled $3.86 billion at June 30, 2021, an increase of $225.1 million from December 31, 2020. This increase is primarily due to growth in non-interest bearing, savings and interest-bearing checking and reciprocal deposit account balances.

Cash and cash equivalents totaled $69.3 million at June 30, 2021, compared to $118.7 million at December 31, 2020. Securities available for sale totaled $1.33 billion at June 30, 2021, compared to $1.07 billion at December 31, 2020. The significant increase in securities available for sale is due to the deployment of funds generated from the growth in deposits.

Total shareholders’ equity was $396.0 million at June 30, 2021, or 8.88% of total assets. Tangible common equity totaled $363.9 million at June 30, 2021, or $16.82 per share. The Company’s wholly owned subsidiary, Independent Bank, remains significantly above “well capitalized” for regulatory purposes with the following ratios:

Regulatory Capital Ratios 6/30/2021 12/31/2020 Well Capitalized Minimum

Tier 1 capital to average total assets 8.69 % 8.81 % 5.00 %

Tier 1 common equity to risk-weighted assets 12.46 % 12.81 % 6.50 %

Tier 1 capital to risk-weighted assets 12.46 % 12.81 % 8.00 %

Total capital to risk-weighted assets 13.71 % 14.06 % 10.00 %

Share Repurchase Plan

On December 18, 2020, the Board of Directors of the Company authorized the 2021 share repurchase plan. Under the terms of the 2021 share repurchase plan, the Company is authorized to purchase up to 1,100,000 shares, or approximately 5% of its outstanding common stock. The repurchase plan is authorized to last through December 31, 2021. For the first six months of 2021, the Company has repurchased 344,005 shares at a weighted average price of $21.18 per share.

Earnings Conference Call

Brad Kessel, President and CEO and Gavin A. Mohr, CFO will review the quarterly results in a conference call for investors and analysts beginning at 12:00 pm ET on Thursday, July 29, 2021.

To participate in the live conference call, please dial 1-866-200-8394. Also the conference call will be accessible through an audio webcast with user-controlled slides via the following site/URL: https://services.choruscall.com/links/ibcp210729.html.

A playback of the call can be accessed by dialing 1-877-344-7529 (Conference ID # 10158604). The replay will be available through August 5, 2021.

About Independent Bank Corporation

Independent Bank Corporation (NASDAQ: IBCP) is a Michigan-based bank holding company with total assets of approximately $4.5 billion. Founded as First National Bank of Ionia in 1864, Independent Bank Corporation operates a branch network across Michigan’s Lower Peninsula through one state-chartered bank subsidiary. This subsidiary (Independent Bank) provides a full range of financial services, including commercial banking, mortgage lending, investments and insurance. Independent Bank Corporation is committed to providing exceptional personal service and value to its customers, stockholders and the communities it serves.

For more information, please visit our Web site at: IndependentBank.com.

Forward-Looking Statements

This press release contains forward-looking statements about Independent Bank Corporation. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements and are based on the information available to, and assumptions and estimates made by, management as of the date hereof. These forward-looking statements cover, among other things, anticipated future revenue and expenses and the future plans and prospects of Independent Bank Corporation. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated. The COVID-19 pandemic is adversely affecting Independent Bank Corporation, its customers, counterparties, employees, and third-party service providers, and the ultimate extent of the impacts on its business, financial position, results of operations, liquidity, and prospects is uncertain. Continued deterioration in general business and economic conditions or turbulence in domestic or global financial markets could adversely affect Independent Bank Corporation’s revenues and the values of its assets and liabilities, reduce the availability of funding from certain financial institutions, lead to a tightening of credit, and increase stock price volatility. In addition, changes to statutes, regulations, or regulatory policies or practices could affect Independent Bank Corporation in substantial and unpredictable ways. Independent Bank Corporation’s results could also be adversely affected by changes in interest rates; further increases in unemployment rates; deterioration in the credit quality of its loan portfolios or in the value of the collateral securing those loans; deterioration in the value of its investment securities; legal and regulatory developments; litigation; increased competition from both banks and non-banks; changes in the level of tariffs and other trade policies of the United States and its global trading partners; changes in customer behavior and preferences; breaches in data security; failures to safeguard personal information; effects of mergers and acquisitions and related integration; effects of critical accounting policies and judgments; and management’s ability to effectively manage credit risk, market risk, operational risk, compliance risk, strategic risk, interest rate risk, liquidity risk and reputation risk.

Certain risks and important factors that could affect Independent Bank Corporation’s future results are identified in its Annual Report on Form 10-K for the year ended December 31, 2020 and other reports filed with the SEC, including among other things under the heading “Risk Factors” in such Annual Report on Form 10-K. Any forward-looking statement speaks only as of the date on which it is made, and Independent Bank Corporation undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances, after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Financial Condition

June 30, December 31,

2021 2020

(unaudited)

(In thousands, except share

amounts)

Assets

Cash and due from banks $ 46,242 $ 56,006

Interest bearing deposits 23,012 62,699

Cash and Cash Equivalents 69,254 118,705

Securities available for sale 1,330,660 1,072,159

Federal Home Loan Bank and Federal Reserve Bank stock, at cost 18,427 18,427

Loans held for sale, carried at fair value 59,752 92,434

Loans

Commercial 1,244,547 1,242,415

Mortgage 1,045,108 1,015,926

Installment 524,904 475,337

Total Loans 2,814,559 2,733,678

Allowance for credit losses ⁽¹⁾ (45,926 ) (35,429 )

Net Loans 2,768,633 2,698,249

Other real estate and repossessed assets 296 766

Property and equipment, net 36,507 36,127

Bank-owned life insurance 55,446 55,180

Capitalized mortgage loan servicing rights, carried at fair value 22,431 16,904

Other intangibles 3,821 4,306

Goodwill 28,300 28,300

Accrued income and other assets 67,745 62,456

Total Assets $ 4,461,272 $ 4,204,013

Liabilities and Shareholders’ Equity

Deposits

Non-interest bearing $ 1,298,282 $ 1,153,473

Savings and interest-bearing checking 1,699,463 1,526,465

Reciprocal 589,493 556,185

Time 272,305 287,402

Brokered time 2,923 113,830

Total Deposits 3,862,466 3,637,355

Other borrowings 30,005 30,012

Subordinated debt 39,319 39,281

Subordinated debentures 39,558 39,524

Accrued expenses and other liabilities 93,950 68,319

Total Liabilities 4,065,298 3,814,491

Shareholders’ Equity

Preferred stock, no par value, 200,000 shares authorized; none issued or outstanding – –

Common stock, no par value, 500,000,000 shares authorized; issued and outstanding:

21,632,912 shares at June 30, 2021 and 21,853,800 shares at December 31, 2020 332,457 339,353

Retained earnings 55,101 40,145

Accumulated other comprehensive income 8,416 10,024

Total Shareholders’ Equity 395,974 389,522

Total Liabilities and Shareholders’ Equity $ 4,461,272 $ 4,204,013

(1) Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Consolidated Statements of Operations

Three Months Ended Six Months Ended

June 30, March 31, June 30, June 30,

2021 2021 2020 2021 2020

(unaudited)

Interest Income (In thousands, except per share amounts)

Interest and fees on loans $ 28,091 $ 28,105 $ 29,863 $ 56,196 $ 61,627

Interest on securities available for sale

Taxable 3,656 2,796 2,847 6,452 5,906

Tax-exempt 1,544 1,384 793 2,928 1,183

Other investments 208 217 251 425 617

Total Interest Income 33,499 32,502 33,754 66,001 69,333

Interest Expense

Deposits 1,142 1,256 2,388 2,398 7,088

Other borrowings and subordinated debt and debentures 964 962 904 1,926 1,592

Total Interest Expense 2,106 2,218 3,292 4,324 8,680

Net Interest Income 31,393 30,284 30,462 61,677 60,653

Provision for credit losses ⁽¹⁾ (1,425 ) (474 ) 5,188 (1,899 ) 11,909

Net Interest Income After Provision for Credit Losses 32,818 30,758 25,274 63,576 48,744

Non-interest Income

Interchange income 3,453 3,049 2,526 6,502 4,983

Service charges on deposit accounts 2,318 1,916 1,623 4,234 4,214

Net gains on assets

Mortgage loans 9,091 12,828 17,642 21,919 26,482

Securities available for sale – 1,416 – 1,416 253

Mortgage loan servicing, net (1,962 ) 5,167 (3,022 ) 3,205 (8,322 )

Other 1,871 2,030 1,598 3,901 3,761

Total Non-interest Income 14,771 26,406 20,367 41,177 31,371

Non-interest Expense

Compensation and employee benefits 19,883 18,522 16,279 38,405 32,788

Data processing 2,576 2,374 1,590 4,950 3,945

Occupancy, net 2,153 2,343 2,159 4,496 4,619

Interchange expense 1,201 948 726 2,149 1,585

Furniture, fixtures and equipment 1,034 1,003 1,090 2,037 2,126

Communications 777 881 800 1,658 1,603

Loan and collection 859 759 756 1,618 1,561

Conversion related expenses 1,143 218 346 1,361 402

Legal and professional 522 499 468 1,021 861

Advertising 164 489 364 653 1,047

FDIC deposit insurance 307 330 430 637 800

Correspondent bank service fees 115 100 94 215 193

Branch closure costs – – 417 – 417

Net (gains) losses on other real estate and repossessed assets 6 (180 ) (9 ) (174 ) 100

Other 1,796 1,735 1,836 3,531 4,018

Total Non-interest Expense 32,536 30,021 27,346 62,557 56,065

Income Before Income Tax 15,053 27,143 18,295 42,196 24,050

Income tax expense 2,665 5,106 3,523 7,771 4,468

Net Income $ 12,388 $ 22,037 $ 14,772 $ 34,425 $ 19,582

Net Income Per Common Share

Basic $ 0.57 $ 1.01 $ 0.67 $ 1.58 $ 0.89

Diluted $ 0.56 $ 1.00 $ 0.67 $ 1.56 $ 0.88

(1) Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.

INDEPENDENT BANK CORPORATION AND SUBSIDIARIES

Selected Financial Data

June 30, March 31, December 31, September 30, June 30,

2021 2021 2020 2020 2020

(unaudited)

(Dollars in thousands except per share data)

Three Months Ended

Net interest income $ 31,393 $ 30,284 $ 30,993 $ 31,966 $ 30,462

Provision for credit losses ⁽¹⁾ (1,425 ) (474 ) (421 ) 975 5,188

Non-interest income 14,771 26,406 22,363 27,011 20,367

Non-interest expense 32,536 30,021 32,707 33,641 27,346

Income before income tax 15,053 27,143 21,070 24,361 18,295

Income tax expense 2,665 5,106 4,084 4,777 3,523

Net income $ 12,388 $ 22,037 $ 16,986 $ 19,584 $ 14,772

Basic earnings per share $ 0.57 $ 1.01 $ 0.78 $ 0.90 $ 0.67

Diluted earnings per share 0.56 1.00 0.77 0.89 0.67

Cash dividend per share 0.21 0.21 0.20 0.20 0.20

Average shares outstanding 21,749,654 21,825,937 21,866,326 21,881,562 21,890,761

Average diluted shares outstanding 21,966,829 22,058,503 22,112,829 22,114,692 22,113,187

Performance Ratios

Return on average assets 1.12 % 2.10 % 1.61 % 1.90 % 1.54 %

Return on average equity 12.78 23.51 17.82 21.36 17.39

Efficiency ratio ⁽²⁾ 69.24 53.48 60.59 56.36 53.07

As a Percent of Average Interest-Earning Assets⁽²⁾

Interest income 3.22 % 3.27 % 3.57 % 3.62 % 3.72 %

Interest expense 0.20 0.22 0.45 0.31 0.36

Net interest income 3.02 3.05 3.12 3.31 3.36

Average Balances

Loans $ 2,859,544 $ 2,834,012 $ 2,876,795 $ 2,925,872 $ 2,913,857

Securities available for sale 1,274,556 1,093,618 1,009,578 891,975 660,126

Total earning assets 4,223,570 4,047,952 3,984,080 3,887,455 3,659,614

Total assets 4,434,760 4,254,294 4,195,546 4,102,318 3,868,408

Deposits 3,879,715 3,698,811 3,632,758 3,559,070 3,303,302

Interest bearing liabilities 2,674,425 2,589,102 2,574,306 2,532,481 2,402,361

Shareholders’ equity 388,780 380,111 379,232 364,714 341,606

End of Period

Capital

Tangible common equity ratio 8.21 % 8.08 % 8.56 % 8.23 % 8.03 %

Average equity to average assets 8.77 8.93 9.04 8.89 8.83

Common shareholders’ equity per share of common stock $ 18.30 $ 17.79 $ 17.82 $ 17.05 $ 16.23

Tangible common equity per share of common stock 16.82 16.30 16.33 15.55 14.72

Total shares outstanding 21,632,912 21,773,734 21,853,800 21,885,368 21,880,183

Selected Balances

Loans $ 2,814,559 $ 2,784,224 $ 2,733,678 $ 2,855,479 $ 2,866,663

Securities available for sale 1,330,660 1,247,280 1,072,159 985,050 856,280

Total earning assets 4,246,410 4,209,017 3,979,397 3,962,824 3,833,523

Total assets 4,461,272 4,426,440 4,204,013 4,168,944 4,043,315

Deposits 3,862,466 3,858,575 3,637,355 3,597,745 3,485,125

Interest bearing liabilities 2,633,747 2,626,280 2,553,418 2,515,185 2,456,193

Shareholders’ equity 395,974 387,329 389,522 373,092 355,123

(1) Beginning January 1, 2021, calculation is based on CECL methodology. Prior to January 1, 2021, calculation was based on the probable incurred loss methodology.
(2) Presented on a fully tax equivalent basis assuming a marginal tax rate of 21%.

Reconciliation of Non-GAAP Financial Measures

Independent Bank Corporation

Independent Bank Corporation believes non-GAAP measures are meaningful because they reflect adjustments commonly made by management, investors, regulators and analysts to evaluate the adequacy of common equity and performance trends. Tangible common equity is used by the Company to measure the quality of capital.

Reconciliation of Non-GAAP Financial Measures

Three Months Ended Six Months Ended

June 30, June 30,

2021 2020 2021 2020

(Dollars in thousands)

Net Interest Margin, Fully Taxable Equivalent (“FTE”)

Net interest income $ 31,393 $ 30,462 $ 61,677 $ 60,653

Add: taxable equivalent adjustment 478 223 882 344

Net interest income – taxable equivalent $ 31,871 $ 30,685 $ 62,559 $ 60,997

Net interest margin (GAAP) ⁽¹⁾ 2.98 % 3.34 % 3.00 % 3.47 %

Net interest margin (FTE) ⁽¹⁾ 3.02 % 3.36 % 3.04 % 3.49 %

(1) Annualized.

Tangible Common Equity Ratio

June 30, March 31, December 31, September 30, June 30,

2021 2021 2020 2020 2020

(Dollars in thousands)

Common shareholders’ equity $ 395,974 $ 387,329 $ 389,522 $ 373,092 $ 355,123

Less:

Goodwill 28,300 28,300 28,300 28,300 28,300

Other intangibles 3,821 4,063 4,306 4,561 4,816

Tangible common equity $ 363,853 $ 354,966 $ 356,916 $ 340,231 $ 322,007

Total assets $ 4,461,272 $ 4,426,440 $ 4,204,013 $ 4,168,944 $ 4,043,315

Less:

Goodwill 28,300 28,300 28,300 28,300 28,300

Other intangibles 3,821 4,063 4,306 4,561 4,816

Tangible assets $ 4,429,151 $ 4,394,077 $ 4,171,407 $ 4,136,083 $ 4,010,199

Common equity ratio 8.88 % 8.75 % 9.27 % 8.95 % 8.78 %

Tangible common equity ratio 8.21 % 8.08 % 8.56 % 8.23 % 8.03 %

Tangible Common Equity per Share of Common Stock:

Common shareholders’ equity $ 395,974 $ 387,329 $ 389,522 $ 373,092 $ 355,123

Tangible common equity $ 363,853 $ 354,966 $ 356,916 $ 340,231 $ 322,007

Shares of common stock outstanding (in thousands) 21,633 21,774 21,854 21,885 21,880

Common shareholders’ equity per share of common stock $ 18.30 $ 17.79 $ 17.82 $ 17.05 $ 16.23

Tangible common equity per share of common stock $ 16.82 $ 16.30 $ 16.33 $ 15.55 $ 14.72

The tangible common equity ratio removes the effect of goodwill and other intangible assets from capital and total assets. Tangible common equity per share of common stock removes the effect of goodwill and other intangible assets from common shareholders’ equity per share of common stock.

Contact: William B. Kessel, President and CEO, 616.447.3933
Gavin A. Mohr, Chief Financial Officer, 616.447.3929

Posted on July 29, 2021 8:02 am
Accenture Completes Acquisition of IT Services Provider Trivadis AG

Accenture Completes Acquisition of IT Services Provider Trivadis AG

GLATTBRUGG, Switzerland–(BUSINESS WIRE)–
Accenture (NYSE: ACN) has completed the acquisition of Trivadis AG, an IT services provider specializing in platforms and solutions that enable highly automated provisioning and innovative use of data. Terms of the transaction, which Accenture announced on July 1, were not disclosed.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20210729005230/en/

Trivadis is now part of Accenture (Graphic: Business Wire)

With headquarters in Glattbrugg, Switzerland, Trivadis uses a suite of proprietary accelerators and assets to help companies advance their data platform lifecycles, automate operational tasks in databases, develop data warehouse solutions and accelerate cloud migrations. Trivadis works with clients to improve their data literacy, drive cloud-based data modernization journeys and deliver actionable insights.

Trivadis also helps companies to refine business models and use new capabilities such as automation, AI and cloud services to lay a strategic foundation that draws the greatest possible value from data. Trivadis’s team of more than 700 professionals located across Switzerland, Germany, Austria, Denmark, and Romania joins Accenture’s Data & AI team within the Accenture Cloud First group.

About Accenture

Accenture is a global professional services company with leading capabilities in digital, cloud and security. Combining unmatched experience and specialized skills across more than 40 industries, we offer Strategy and Consulting, Interactive, Technology and Operations services — all powered by the world’s largest network of Advanced Technology and Intelligent Operations centers. Our 569,000 people deliver on the promise of technology and human ingenuity every day, serving clients in more than 120 countries. We embrace the power of change to create value and shared success for our clients, people, shareholders, partners and communities. Visit us at www.accenture.com.

Forward-Looking Statements

Except for the historical information and discussions contained herein, statements in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as “may,” “will,” “should,” “likely,” “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” “positioned,” “outlook” and similar expressions are used to identify these forward-looking statements. These statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied. Many of the following risks, uncertainties and other factors identified below are, and will be, amplified by the COVID-19 pandemic. These risks include, without limitation, risks that: the transaction might not achieve the anticipated benefits for Accenture; Accenture’s results of operations have been significantly adversely affected and could in the future be materially adversely impacted by the COVID-19 pandemic; Accenture’s results of operations have been, and may in the future be, adversely affected by volatile, negative or uncertain economic and political conditions and the effects of these conditions on the company’s clients’ businesses and levels of business activity; Accenture’s business depends on generating and maintaining ongoing, profitable client demand for the company’s services and solutions including through the adaptation and expansion of its services and solutions in response to ongoing changes in technology and offerings, and a significant reduction in such demand or an inability to respond to the evolving technological environment could materially affect the company’s results of operations; if Accenture is unable to keep its supply of skills and resources in balance with client demand around the world and attract and retain professionals with strong leadership skills, the company’s business, the utilization rate of the company’s professionals and the company’s results of operations may be materially adversely affected; Accenture could face legal, reputational and financial risks if the company fails to protect client and/or company data from security incidents or cyberattacks; the markets in which Accenture operates are highly competitive, and Accenture might not be able to compete effectively; Accenture’s profitability could materially suffer if the company is unable to obtain favorable pricing for its services and solutions, if the company is unable to remain competitive, if its cost-management strategies are unsuccessful or if it experiences delivery inefficiencies or fail to satisfy certain agreed-upon targets or specific service levels; changes in Accenture’s level of taxes, as well as audits, investigations and tax proceedings, or changes in tax laws or in their interpretation or enforcement, could have a material adverse effect on the company’s effective tax rate, results of operations, cash flows and financial condition; Accenture’s ability to attract and retain business and employees may depend on its reputation in the marketplace; as a result of Accenture’s geographically diverse operations and its growth strategy to continue to expand in its key markets around the world, the company is more susceptible to certain risks; Accenture’s business could be materially adversely affected if the company incurs legal liability; Accenture’s work with government clients exposes the company to additional risks inherent in the government contracting environment; Accenture’s results of operations could be materially adversely affected by fluctuations in foreign currency exchange rates; if Accenture is unable to manage the organizational challenges associated with its size, the company might be unable to achieve its business objectives; if Accenture does not successfully manage and develop its relationships with key alliance partners or fails to anticipate and establish new alliances in new technologies, the company’s results of operations could be adversely affected; Accenture might not be successful at acquiring, investing in or integrating businesses, entering into joint ventures or divesting businesses; if Accenture is unable to protect or enforce its intellectual property rights or if Accenture’s services or solutions infringe upon the intellectual property rights of others or the company loses its ability to utilize the intellectual property of others, its business could be adversely affected; Accenture’s results of operations and share price could be adversely affected if it is unable to maintain effective internal controls; changes to accounting standards or in the estimates and assumptions Accenture makes in connection with the preparation of its consolidated financial statements could adversely affect its financial results; Accenture might be unable to access additional capital on favorable terms or at all and if the company raises equity capital, it may dilute its shareholders’ ownership interest in the company; Accenture may be subject to criticism and negative publicity related to its incorporation in Ireland; as well as the risks, uncertainties and other factors discussed under the “Risk Factors” heading in Accenture plc’s most recent Annual Report on Form 10-K and other documents filed with or furnished to the Securities and Exchange Commission. Statements in this news release speak only as of the date they were made, and Accenture undertakes no duty to update any forward-looking statements made in this news release or to conform such statements to actual results or changes in Accenture’s expectations.

Copyright © 2021 Accenture. All rights reserved. Accenture and its logo are registered trademarks of Accenture.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005230/en/

Diana Büchner

Accenture

+6173 94 69081

[email protected]

Julie Bennink

Accenture

+1 312 693 7301

[email protected]

KEYWORDS: Switzerland Europe

INDUSTRY KEYWORDS: Professional Services Data Management Technology Other Technology Software Consulting

MEDIA:

Photo

Trivadis is now part of Accenture (Graphic: Business Wire)

Posted on July 29, 2021 8:01 am
Peabody Reports Results For Quarter Ended June 30, 2021

PR Newswire

ST. LOUIS, July 29, 2021 /PRNewswire/ — Peabody (NYSE: BTU) today announced its second quarter 2021 operating results, including revenues of $723.4 million; loss from continuing operations, net of income taxes of $23.0 million; net loss attributable to common stockholders of $28.6 million; diluted loss per share from continuing operations of $0.26; and Adjusted EBITDA0F¹ of $122.1 million.

“We are optimistic about the future given strong coal market demand and pricing around the globe as economies continue to recover from the pandemic; our assets are responding to the current market cycle and continue to benefit from cost improvement initiatives,” said Peabody President and Chief Executive Officer Jim Grech. “The company has taken a disciplined approach focusing on expanding margins, through ongoing operational improvements, cost controls and sales strategies, along with reducing debt, as we progress to position the company to be resilient in all market cycles.”

Second Quarter 2021 Financial Results

Second quarter revenues totaled $723.4 million compared to $626.7 million in the prior year primarily due to the impact of higher volumes and improved seaborne thermal pricing.

Selling, general and administrative expenses decreased 15 percent from the prior year to $21.4 million as a result of the company’s ongoing cost reduction efforts.

Depreciation, depletion, and amortization (DD&A) declined 13 percent from the prior year to $77.1 million, primarily due to the impairment at the North Antelope Rochelle Mine recorded in Q2 2020.

Interest expense of $45.4 million increased $11.1 million over the prior year due to higher borrowing costs and amortization of debt issuance costs.

Loss from continuing operations, net of income taxes totaled $23.0 million compared to $1.5 billion in the prior year, or $127.2 million excluding the $1.4 billion non-cash impairment of the North Antelope Rochelle Mine. Adjusted EBITDA totaled $122.1 million compared to $23.4 million in the prior year primarily due to higher realized seaborne thermal pricing, higher U.S. thermal volumes and improved costs across the platform.

Segment Performance

During the second quarter, the seaborne thermal segment shipped 4.1 million tons with exports of 2.0 million tons at an average realized price of $73 per ton and 2.1 million tons sold under a long-term domestic contract. Despite a year-over-year reduction in sales volumes, unfavorable exchange rates, and higher fuel and royalty costs, seaborne thermal segment costs of $29.61 per ton were largely in line with the prior year reflecting the continued impact of cost reduction initiatives and product mix. The segment reported 37 percent Adjusted EBITDA margins and Adjusted EBITDA of $71.4 million.

In the second quarter, Wilpinjong shipped 3.3 million tons at an average realized price of $38 per ton, which included 1.2 million tons of export sales at an average realized price of $63 per ton and 2.1 million tons of domestic sales at an average price of $22 per ton. Wilpinjong costs of $22 per ton were impacted by unfavorable exchange rates and higher fuel and royalty costs compared to the prior year. Operating cash flow was also impacted by timing of shipments, higher accounts receivable and higher inventory levels. Wilpinjong contributed approximately $52 million of Adjusted EBITDA, completed $7 million of capital expenditures and had $102 million of cash and cash equivalents as of June 30, 2021.

The seaborne met segment shipped 1.4 million tons at an average realized price of $85.48 per short ton in the second quarter, with Metropolitan restarting longwall production late in the quarter. Total segment costs of $104.24 per ton decreased 14% compared to the prior year as productivity improvements and increased sales volumes at the CMJV offset the impacts of unfavorable exchange rates, ramp up costs at Metropolitan and Shoal Creek idle costs. Seaborne met costs excluding Shoal Creek were approximately $95 per ton, favorable to $110 per ton in the prior year primarily due to fleet optimization and mine sequencing at the CMJV, which lowered costs by more than 20% to $84 per ton. The segment reported an Adjusted EBITDA loss of $26.4 million.

The PRB segment shipped 22.5 million tons at an average realized price of $11.06 per ton. PRB costs per ton decreased by two percent to $9.04 as higher fuel cost impact of $0.37 per ton was more than offset by 26% higher volumes over the prior year. The segment reported 18% Adjusted EBITDA margins and Adjusted EBITDA of $45.5 million.

The other U.S. thermal segment shipped 3.9 million tons at an average realized price of $40.70 per ton. Cost per ton decreased 5 percent from the prior year to $29.57 due to pit sequencing and timing of longwall moves in the prior year. The segment reported 27 percent Adjusted EBITDA margins and Adjusted EBITDA of $44.3 million.

Balance Sheet and Cash Flow

Peabody ended the quarter with $561.9 million of cash, cash equivalents and restricted cash, a $61.8 million reduction over the prior quarter. The company retired approximately $84 million of debt in the quarter and reached agreements to retire an additional $50 million that will settle after June 30, 2021.

During the quarter, the company completed multiple bilateral debt-for-equity exchanges by issuing 4.5 million shares of common stock in exchange for $30.9 million of Senior Secured Notes due March 2022. The company also retired $53 million of other senior secured debt through open market repurchases. As a result, Peabody recorded a net gain on debt extinguishment of $11.8 million. The current portion of long-term debt increased by $25 million due primarily to the pending settlement of additional debt repurchases.

For the year, the company has retired $126 million of senior secured debt, with an additional $50 million pending settlement after June 30, 2021.

Also, during the quarter, the company sold 8.1 million shares of common stock under its previously announced “at-the-market” equity offering program (ATM), raising net cash proceeds of $65.1 million. Subsequent to June 30, 2021, the company settled sales of an additional 2.7 million shares under the program, raising net cash proceeds of $21.5 million, resulting in 1.7 million shares remaining available for issuance under the currently authorized ATM program.

Outlook

Based on current market conditions, Peabody anticipates the following in 2021:

US Thermal Operations:

Coal deliveries will remain largely dependent on general economic conditions, weather, natural gas prices, utility inventory levels and rail performance.

Essentially all projected volumes priced and committed.

Based on expected production levels and current commodity prices, full year 2021 cost per ton in the PRB are estimated to be $9.35 and other U.S. thermal costs are estimated to be $30.50.

Seaborne Thermal Operations:

Higher seaborne thermal volumes in the second half as Wilpinjong and the Wambo JV complete development projects and reach projected production run rates.

Costs per ton are expected to be $33.75 due to product mix, higher expected royalties, exchange rates and fuel prices.

Second half Wilpinjong revenue and costs per ton are anticipated to be higher than first half 2021 as estimated export shipments (with higher realized pricing and higher preparation, transportation and royalty costs as compared to domestic shipments) are anticipated to be a higher proportion of total volumes. Peabody anticipates 3.7 million tons of export shipments and 3.6 million tons of domestic shipments for the remainder of the year.

Seaborne Met Operations:

The CMJV is anticipated to continue to recognize cost and productivity improvements with full year sales volumes at the high end of guidance of 3.5 – 4.0 million tons.

Metropolitan is expected to ship approximately 0.8 million tons in the second half of 2021 as the longwall reaches planned production levels.

Costs per ton, excluding Shoal Creek are expected to be $93.

The Shoal Creek prep plant upgrade project remains on schedule with completion expected in mid Q3. Negotiations remain ongoing with respect to the expired Shoal Creek labor contract.

Corporate and Other

SG&A expense guidance has been revised down to $80 million reflecting further reductions in overhead costs.

Capital expenditures are now estimated to be $200 million, a $25 million reduction from prior guidance, including major project capital of $100 million.

Interest expense is now expected to be approximately $190 million, including $40 million of non-cash expense, which reflects a $10 million decrease from prior guidance due to early debt retirements.

Peabody also anticipates the following cash impacts for the full year 2021:

$60 million related to final reclamation activities

$30 million related to postretirement benefits

$15 million final payment pursuant to settlement with multi-employer pension plan (MEPP), paid in July

Today’s earnings call is scheduled for 10 a.m. CT and can be accessed via the company’s website at PeabodyEnergy.com.

Peabody (NYSE: BTU) is a leading coal producer, providing essential products to fuel baseload electricity for emerging and developed countries and create the steel needed to build foundational infrastructure. Our commitment to sustainability underpins our activities today and helps to shape our strategy for the future. For further information, visit PeabodyEnergy.com.

Contact:

Alice Tharenos

314.342.7890

_______________

¹ Adjusted EBITDA is a non-GAAP financial measure. Revenues per ton, costs per ton, Adjusted EBITDA margin per ton and percent are non-GAAP operating/statistical measures. Adjusted EBITDA margin is equal to segment Adjusted EBITDA divided by segment revenues. Please refer to the tables and related notes in this press release for a reconciliation and definition of non-GAAP financial measures.

2021 Guidance Targets

Segment Performance

Total Volume
(millions of
short tons)

Priced Volume
(millions of short
tons)

Priced Volume
Pricing per
Short Ton

Average Cost
per Short Ton

PRB – Total

~85 – 90

~86

~$11.00

~$9.35

Other U.S. Thermal – Total

~16 – 17

~16.5

~$39.50

~$30.50

Seaborne Thermal (Export)

~9.5 – 10.5

~6.6

~$70.00

Seaborne Thermal – Total

~17 – 18

~$33.75

Seaborne Metallurgical (excluding Shoal Creek)

~4.5 – 5

~2.8

~$88.00

~$93.00

Wilpinjong Performance

Volume
(millions of
short tons)

Priced Volume
(millions of short
tons)

Priced Volume
Pricing per
Short Ton

Average Cost
per Short Ton

Wilpinjong (Export)

~6

~3.5

~$56.70

Wilpinjong (Domestic)

~7.5

~7.5

Wilpinjong – Total

~13.5

~11.0

~$23.00

Other Annual Financial Metrics ($ in millions)

SG&A

~$80

Net Cash Interest Payments

~$150

Interest Expense (Including Non-Cash)

~$190

Total Capital Expenditures

~$200

Major Project Capital Expenditures

~$100

ARO Cash Spend

~$60

Postretirement benefits cash spend

~$30

Multi-employer pension plan (MEPP) payment

~$15

Supplemental Information

PRB and Other U.S.
Thermal

PRB and Other U.S. Thermal volumes reflect volumes priced as of June 30, 2021.

Seaborne Thermal

Seaborne Thermal volumes reflect volumes priced as of June 30, 2021. Realized seaborne thermal export pricing varies based on sales timing and product quality as well as optimization of price, quality and volumes. In general, the Wambo unpriced products are expected to price with reference to Globalcoal “NEWC” levels and Wilpinjong, with a higher ash content, is anticipated to price at a 5-15% discount to API 5 price levels.

Seaborne
Metallurgical

CMJV volumes are expected to be 3.5 – 4.0 million tons. Metropolitan volumes are expected to be 1.0 million tons. No guidance has been provided for Shoal Creek.

Certain forward-looking measures and metrics presented are non-GAAP financial and operating/statistical measures. Due to the volatility and variability of certain items needed to reconcile these measures to their nearest GAAP measure, no reconciliation can be provided without unreasonable cost or effort.

Condensed Consolidated Statements of Operations (Unaudited)

For the Quarters and Six Months Ended Jun. 30, 2021 and 2020

(In Millions, Except Per Share Data)

Quarter Ended

Six Months Ended

Jun.

Jun.

Jun.

Jun.

2021

2020

2021

2020

Tons Sold

32.8

28.3

63.0

63.9

Revenues

$

723.4

$

626.7

$

1,374.7

$

1,472.9

Operating Costs and Expenses ⁽¹⁾

611.4

556.3

1,194.0

1,335.8

Depreciation, Depletion and Amortization

77.1

88.3

145.4

194.3

Asset Retirement Obligation Expenses

15.1

14.1

31.0

31.7

Selling and Administrative Expenses

21.4

25.2

43.1

50.1

Restructuring Charges

2.1

16.5

4.2

23.0

Transaction Costs Related to Joint Ventures

—

12.9

—

17.1

Other Operating (Income) Loss:

Net (Gain) Loss on Disposals

(3.0)

0.2

(2.4)

(7.9)

Asset Impairment

—

1,418.1

—

1,418.1

Loss from Equity Affiliates

3.5

6.0

4.4

15.1

Operating Loss

(4.2)

(1,510.9)

(45.0)

(1,604.4)

Interest Expense

45.4

34.3

97.8

67.4

Net Gain on Early Debt Extinguishment

(11.8)

—

(15.3)

—

Interest Income

(1.3)

(2.4)

(2.8)

(5.5)

Net Periodic Benefit (Credit) Costs, Excluding Service Cost

(8.7)

2.7

(17.4)

5.5

Loss from Continuing Operations Before Income Taxes

(27.8)

(1,545.5)

(107.3)

(1,671.8)

Income Tax (Benefit) Provision

(4.8)

(0.2)

(6.6)

2.8

Loss from Continuing Operations, Net of Income Taxes

(23.0)

(1,545.3)

(100.7)

(1,674.6)

Loss from Discontinued Operations, Net of Income Taxes

(2.3)

(2.3)

(4.3)

(4.5)

Net Loss

(25.3)

(1,547.6)

(105.0)

(1,679.1)

Less: Net Income (Loss) Attributable to Noncontrolling Interests

3.3

(3.4)

3.7

(5.2)

Net Loss Attributable to Common Stockholders

$

(28.6)

$

(1,544.2)

$

(108.7)

$

(1,673.9)

Adjusted EBITDA ⁽²⁾

$

122.1

$

23.4

$

183.2

$

60.2

Diluted EPS – Loss from Continuing Operations ⁽³⁾⁽⁴⁾

$

(0.26)

$

(15.76)

$

(1.05)

$

(17.12)

Diluted EPS – Net Loss Attributable to Common Stockholders ⁽³⁾

$

(0.28)

$

(15.78)

$

(1.09)

$

(17.16)

(1)

Excludes items shown separately.

(2)

Adjusted EBITDA is a non-GAAP financial measure. Refer to the “Reconciliation of Non-GAAP Financial Measures” section in this document for definitions and reconciliations to the most comparable measures under U.S. GAAP.

(3)

During the quarters ended June 30, 2021 and 2020, weighted average diluted shares outstanding were 101.2 million and 97.9 million, respectively. During the six months ended June 30, 2021 and 2020, weighted average diluted shares outstanding were 99.8 million and 97.5 million, respectively.

(4)

Reflects loss from continuing operations, net of income taxes less net income (loss) attributable to noncontrolling interests.

This information is intended to be reviewed in conjunction with the company’s filings with the SEC.

Supplemental Financial Data (Unaudited)

For the Quarters and Six Months Ended Jun. 30, 2021 and 2020

Quarter Ended

Six Months Ended

Jun.

Jun.

Jun.

Jun.

2021

2020

2021

2020

Tons Sold (In Millions)

Seaborne Thermal Mining Operations

4.1

4.6

8.2

9.2

Seaborne Metallurgical Mining Operations

1.4

1.1

2.4

3.1

Powder River Basin Mining Operations

22.5

17.9

43.2

41.4

Other U.S. Thermal Mining Operations

3.9

3.8

7.8

8.7

Total U.S. Thermal Mining Operations

26.4

21.7

51.0

50.1

Corporate and Other

0.9

0.9

1.4

1.5

Total

32.8

28.3

63.0

63.9

Revenue Summary (In Millions)

Seaborne Thermal Mining Operations

$

194.1

$

162.0

$

370.5

$

363.1

Seaborne Metallurgical Mining Operations

121.0

91.6

208.5

284.8

Powder River Basin Mining Operations

248.6

205.8

477.0

472.4

Other U.S. Thermal Mining Operations

162.1

152.0

311.4

344.3

Total U.S. Thermal Mining Operations

410.7

357.8

788.4

816.7

Corporate and Other

(2.4)

15.3

7.3

8.3

Total

$

723.4

$

626.7

$

1,374.7

$

1,472.9

Total Reporting Segment Costs Summary (In Millions)
⁽¹⁾

Seaborne Thermal Mining Operations

$

122.7

$

134.3

$

270.6

$

280.3

Seaborne Metallurgical Mining Operations

147.4

127.7

257.3

353.6

Powder River Basin Mining Operations

203.1

166.5

401.4

407.7

Other U.S. Thermal Mining Operations

117.8

119.1

230.9

272.9

Total U.S. Thermal Mining Operations

320.9

285.6

632.3

680.6

Corporate and Other

11.6

16.9

9.8

35.0

Total

$

602.6

$

564.5

$

1,170.0

$

1,349.5

Other Supplemental Financial Data (In Millions)

Adjusted EBITDA – Seaborne Thermal Mining Operations

$

71.4

$

27.7

$

99.9

$

82.8

Adjusted EBITDA – Seaborne Metallurgical Mining Operations

(26.4)

(36.1)

(48.8)

(68.8)

Adjusted EBITDA – Powder River Basin Mining Operations

45.5

39.3

75.6

64.7

Adjusted EBITDA – Other U.S. Thermal Mining Operations

44.3

32.9

80.5

71.4

Adjusted EBITDA – Total U.S. Thermal Mining Operations

89.8

72.2

156.1

136.1

Middlemount ⁽²⁾

(4.1)

(6.4)

(6.4)

(16.1)

Resource Management Results ⁽³⁾

3.9

0.8

4.3

8.8

Selling and Administrative Expenses

(21.4)

(25.2)

(43.1)

(50.1)

Other Operating Costs, Net ⁽⁴⁾

8.9

(9.6)

21.2

(32.5)

Adjusted EBITDA ⁽¹⁾

$

122.1

$

23.4

$

183.2

$

60.2

Note: See footnote explanations on following page

Supplemental Financial Data (Unaudited)

For the Quarters and Six Months Ended Jun. 30, 2021 and 2020

Quarter Ended

Six Months Ended

Jun.

Jun.

Jun.

Jun.

2021

2020

2021

2020

Revenues per Ton – Mining Operations
⁽⁵⁾

Seaborne Thermal

$

46.92

$

35.10

$

45.15

$

39.58

Seaborne Metallurgical

85.48

86.80

86.31

92.61

Powder River Basin

11.06

11.45

11.04

11.40

Other U.S. Thermal

40.70

39.81

39.75

39.49

Total U.S. Thermal

15.53

16.42

15.45

16.28

Costs per Ton – Mining Operations
⁽⁵⁾⁽⁶⁾

Seaborne Thermal

$

29.61

$

29.19

$

32.97

$

30.56

Seaborne Metallurgical

104.24

120.72

106.51

115.00

Powder River Basin

9.04

9.26

9.29

9.84

Other U.S. Thermal

29.57

31.22

29.47

31.31

Total U.S. Thermal

12.14

13.11

12.39

13.57

Adjusted EBITDA Margin per Ton – Mining Operations
⁽⁵⁾⁽⁶⁾

Seaborne Thermal

$

17.31

$

5.91

$

12.18

$

9.02

Seaborne Metallurgical

(18.76)

(33.92)

(20.20)

(22.39)

Powder River Basin

2.02

2.19

1.75

1.56

Other U.S. Thermal

11.13

8.59

10.28

8.18

Total U.S. Thermal

3.39

3.31

3.06

2.71

(1)

Total Reporting Segment Costs and Adjusted EBITDA are non-GAAP financial measures. Refer to the “Reconciliation of Non-GAAP Financial Measures” section
in this document for definitions and reconciliations to the most comparable measures under U.S. GAAP.

(2)

We account for our 50% equity interest in Middlemount Coal Pty Ltd. (Middlemount), which owns the Middlemount Mine, under the equity method. Middlemount’s
standalone results exclude the impact of related changes in deferred tax asset valuation allowance and reserves and amortization of basis difference recorded by
the company in applying the equity method. Middlemount’s standalone results include (on a 50% attributable basis):

Quarter Ended

Six Months Ended

Jun.

Jun.

Jun.

Jun.

2021

2020

2021

2020

(In Millions)

Tons sold

0.5

0.3

1.1

0.8

Depreciation, depletion and amortization and asset retirement obligation
expenses

$

6.9

$

8.4

$

13.6

$

14.3

Net interest expense

5.0

3.2

10.1

5.9

Income tax benefit

(0.8)

(2.8)

(0.9)

(7.0)

(3)

Includes gains (losses) on certain surplus coal reserve and surface land sales and property management costs and revenues.

(4)

Includes trading and brokerage activities, costs associated with post-mining activities, minimum charges on certain transportation-related contracts and costs
associated with suspended operations including the North Goonyella Mine.

(5)

Revenues per Ton, Costs per Ton and Adjusted EBITDA Margin per Ton are metrics used by management to measure each of our mining segment’s operating
performance. Revenues per Ton and Adjusted EBITDA Margin per Ton are equal to revenues by segment and Adjusted EBITDA by segment, respectively, divided
by segment tons sold. Costs per Ton is equal to Revenues per Ton less Adjusted EBITDA Margin per Ton. Management believes Costs per Ton and Adjusted
EBITDA Margin per Ton best reflect controllable costs and operating results at the mining segment level. We consider all measures reported on a per ton basis to
be operating/statistical measures; however, we include reconciliations of the related non-GAAP financial measures (Adjusted EBITDA and Total Reporting
Segment Costs) in the “Reconciliation of Non-GAAP Financial Measures” section in this document.

(6)

Includes revenue-based production taxes and royalties; excludes depreciation, depletion and amortization; asset retirement obligation expenses; selling and
administrative expenses; restructuring charges; asset impairment; amortization of take-or-pay contract-based intangibles; and certain other costs related to post-
mining activities.

This information is intended to be reviewed in conjunction with the company’s filings with the SEC.

Condensed Consolidated Balance Sheets

As of Jun. 30, 2021 and Dec. 31, 2020

(Dollars In Millions)

(Unaudited)

Jun. 30, 2021

Dec. 31, 2020

Cash and Cash Equivalents

$

548.3

$

709.2

Restricted Cash

13.6

—

Accounts Receivable, Net

250.7

244.8

Inventories

232.5

261.6

Other Current Assets

225.4

204.7

Total Current Assets

1,270.5

1,420.3

Property, Plant, Equipment and Mine Development, Net

3,008.3

3,051.1

Operating Lease Right-of-Use Assets

42.4

49.9

Investments and Other Assets

132.2

140.9

Deferred Income Taxes

—

4.9

Total Assets

$

4,453.4

$

4,667.1

Current Portion of Long-Term Debt

$

94.0

$

44.9

Accounts Payable and Accrued Expenses

711.0

745.7

Total Current Liabilities

805.0

790.6

Long-Term Debt, Less Current Portion

1,324.1

1,502.9

Deferred Income Taxes

34.2

35.0

Asset Retirement Obligations

664.5

650.5

Accrued Postretirement Benefit Costs

405.9

413.2

Operating Lease Liabilities, Less Current Portion

34.8

42.1

Other Noncurrent Liabilities

233.1

251.5

Total Liabilities

3,501.6

3,685.8

Common Stock

1.5

1.4

Additional Paid-in Capital

3,463.8

3,364.6

Treasury Stock

(1,370.2)

(1,368.9)

Accumulated Deficit

(1,382.0)

(1,273.3)

Accumulated Other Comprehensive Income

183.4

205.8

Peabody Energy Corporation Stockholders’ Equity

896.5

929.6

Noncontrolling Interests

55.3

51.7

Total Stockholders’ Equity

951.8

981.3

Total Liabilities and Stockholders’ Equity

$

4,453.4

$

4,667.1

This information is intended to be reviewed in conjunction with the company’s filings with the SEC.

Condensed Consolidated Statements of Cash Flows (Unaudited)

For the Six Months Ended Jun. 30, 2021 and 2020

(Dollars In Millions)

Six Months Ended

Jun.

Jun.

2021

2020

Cash Flows From Operating Activities

Net Cash Used In Continuing Operations

$

(18.0)

$

(32.7)

Net Cash Used in Discontinued Operations

(4.8)

(20.4)

Net Cash Used In Operating Activities

(22.8)

(53.1)

Cash Flows From Investing Activities

Additions to Property, Plant, Equipment and Mine Development

(93.9)

(85.8)

Changes in Accrued Expenses Related to Capital Expenditures

(4.1)

(14.3)

Proceeds from Disposal of Assets, Net of Receivables

4.9

12.0

Contributions to Joint Ventures

(244.5)

(192.0)

Distributions from Joint Ventures

252.6

188.2

Advances to Related Parties

(0.2)

(23.1)

Cash Receipts from Middlemount Coal Pty Ltd and Other Related Parties

2.6

—

Other, Net

—

(0.6)

Net Cash Used In Investing Activities

(82.6)

(115.6)

Cash Flows From Financing Activities

Proceeds from Long-Term Debt

—

300.0

Repayments of Long-Term Debt

(83.1)

(9.9)

Payment of Debt Issuance and Other Deferred Financing Costs

(22.5)

—

Proceeds from Common Stock Issuances, Net of Costs

65.1

—

Repurchase of Employee Common Stock Relinquished for Tax Withholding

(1.3)

(1.6)

Distributions to Noncontrolling Interests

(0.1)

(3.5)

Net Cash (Used In) Provided By Financing Activities

(41.9)

285.0

Net Change in Cash, Cash Equivalents and Restricted Cash

(147.3)

116.3

Cash, Cash Equivalents and Restricted Cash at Beginning of Period

709.2

732.2

Cash, Cash Equivalents and Restricted Cash at End of Period

$

561.9

$

848.5

This information is intended to be reviewed in conjunction with the company’s filings with the SEC.

Reconciliation of Non-GAAP Financial Measures (Unaudited)

For the Quarters and Six Months Ended Jun. 30, 2021 and 2020

(Dollars In Millions)

Note: Management believes that non-GAAP performance measures are used by investors to measure our operating performance and lenders to measure our ability to incur and service debt. These measures are not intended to serve as alternatives to U.S. GAAP measures of performance and may not be comparable to similarly-titled measures presented by other companies.

Quarter Ended

Six Months Ended

Jun.

Jun.

Jun.

Jun.

2021

2020

2021

2020

Loss from Continuing Operations, Net of Income Taxes

$

(23.0)

$

(1,545.3)

$

(100.7)

$

(1,674.6)

Depreciation, Depletion and Amortization

77.1

88.3

145.4

194.3

Asset Retirement Obligation Expenses

15.1

14.1

31.0

31.7

Restructuring Charges

2.1

16.5

4.2

23.0

Transaction Costs Related to Joint Ventures

—

12.9

—

17.1

Asset Impairment

—

1,418.1

—

1,418.1

Changes in Deferred Tax Asset Valuation Allowance and Reserves
and Amortization of Basis Difference Related to Equity Affiliates

(0.5)

(0.4)

(2.0)

(1.1)

Interest Expense

45.4

34.3

97.8

67.4

Net Gain on Early Debt Extinguishment

(11.8)

—

(15.3)

—

Interest Income

(1.3)

(2.4)

(2.8)

(5.5)

Unrealized Losses (Gains) on Economic Hedges

23.7

(7.0)

25.6

(4.8)

Unrealized Losses (Gains) on Non-Coal Trading Derivative Contracts

1.2

(2.8)

8.8

(2.9)

Take-or-Pay Contract-Based Intangible Recognition

(1.1)

(2.7)

(2.2)

(5.3)

Income Tax (Benefit) Provision

(4.8)

(0.2)

(6.6)

2.8

Adjusted EBITDA ⁽¹⁾

$

122.1

$

23.4

$

183.2

$

60.2

Operating Costs and Expenses

$

611.4

$

556.3

$

1,194.0

$

1,335.8

Unrealized (Losses) Gains on Non-Coal Trading Derivative Contracts

(1.2)

2.8

(8.8)

2.9

Take-or-Pay Contract-Based Intangible Recognition

1.1

2.7

2.2

5.3

Net Periodic Benefit (Credit) Costs, Excluding Service Cost

(8.7)

2.7

(17.4)

5.5

Total Reporting Segment Costs ⁽²⁾

$

602.6

$

564.5

$

1,170.0

$

1,349.5

Net Cash Used In Operating Activities

$

(22.8)

$

(53.1)

Net Cash Used In Investing Activities

(82.6)

(115.6)

Free Cash Flow ⁽³⁾

$

(105.4)

$

(168.7)

(1)

Adjusted EBITDA is defined as loss from continuing operations before deducting net interest expense, income taxes, asset retirement obligation expenses and
depreciation, depletion and amortization. Adjusted EBITDA is also adjusted for the discrete items that management excluded in analyzing each of our segment’s
operating performance, as displayed in the reconciliation above. Adjusted EBITDA is used by management as the primary metric to measure each of our segment’s
operating performance.

(2)

Total Reporting Segment Costs is defined as operating costs and expenses adjusted for the discrete items that management excluded in analyzing each of our
segment’s operating performance, as displayed in the reconciliation above. Total Reporting Segment Costs is used by management as a metric to measure each of
our segment’s operating performance.

(3)

Free Cash Flow is defined as net cash used in operating activities less net cash used in investing activities and excludes cash outflows related to business
combinations. Free Cash Flow is used by management as a measure of our financial performance and our ability to generate excess cash flow from our business
operations.

This information is intended to be reviewed in conjunction with the company’s filings with the SEC.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the securities laws. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words or variation of words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “projects,” “forecasts,” “targets,” “would,” “will,” “should,” “goal,” “could” or “may” or other similar expressions. Forward-looking statements provide management’s current expectations or predictions of future conditions, events or results. All statements that address operating performance, events, or developments that Peabody expects will occur in the future are forward-looking statements. They may include estimates of sales and other operating performance targets, cost savings, capital expenditures, other expense items, actions relating to strategic initiatives, demand for the company’s products, liquidity, capital structure, market share, industry volume, other financial items, descriptions of management’s plans or objectives for future operations and descriptions of assumptions underlying any of the above. All forward-looking statements speak only as of the date they are made and reflect Peabody’s good faith beliefs, assumptions and expectations, but they are not guarantees of future performance or events. Furthermore, Peabody disclaims any obligation to publicly update or revise any forward-looking statement, except as required by law. By their nature, forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements. Factors that might cause such differences include, but are not limited to, a variety of economic, competitive and regulatory factors, many of which are beyond Peabody’s control, including the ongoing impact of the COVID-19 pandemic and factors that are described in Peabody’s Annual Report on Form 10-K for the fiscal year ended Dec. 31, 2020, and other factors that Peabody may describe from time to time in other filings with the SEC. You may get such filings for free at Peabody’s website at www.peabodyenergy.com. You should understand that it is not possible to predict or identify all such factors and, consequently, you should not consider any such list to be a complete set of all potential risks or uncertainties.

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SOURCE Peabody

Posted on July 29, 2021 7:54 am
Atlantic Union Bankshares Corporation Declares Quarterly Common Stock Dividend and Preferred Stock Dividend

RICHMOND, Va., July 29, 2021 (GLOBE NEWSWIRE) — The Board of Directors (the “Board”) of Atlantic Union Bankshares Corporation (the “Company”) has declared a quarterly dividend of $0.28 per share of common stock, which is the same as the prior quarter and a 3 cent or 12% increase from the common stock dividend paid in the third quarter of 2020. Based on the Company’s common stock closing price of $35.77 on July 28, 2021, the dividend yield is approximately 3.1%. The common stock dividend is payable on August 27, 2021 to common shareholders of record as of August 13, 2021.

The Board also declared a quarterly dividend on the outstanding shares of the Company’s 6.875% Perpetual Non-Cumulative Preferred Stock, Series A (the “Series A preferred stock”). The Series A preferred stock is represented by depositary shares, each representing a 1/400^th ownership interest in a share of Series A preferred stock. The dividend of $171.88 per share (equivalent to $0.43 per outstanding depositary share) is payable on September 1, 2021 to holders of record as of August 17, 2021.

About Atlantic Union Bankshares Corporation

Headquartered in Richmond, Virginia, Atlantic Union Bankshares Corporation (Nasdaq: AUB) is the holding company for Atlantic Union Bank. Atlantic Union Bank has 129 branches and approximately 150 ATMs located throughout Virginia, and in portions of Maryland and North Carolina. Certain non-bank financial services affiliates of Atlantic Union Bank include: Atlantic Union Equipment Finance, Inc., which provides equipment financing; Old Dominion Capital Management, Inc., and its subsidiary, Outfitter Advisors, Ltd., and Dixon, Hubard, Feinour, & Brown, Inc., which provide investment advisory services; Atlantic Union Financial Consultants, LLC, which provides brokerage services; and Union Insurance Group, LLC, which offers various lines of insurance products.

Contact:

Bill Cimino, Senior Vice President and Director of Investor Relations 804.448.0937

Posted on July 29, 2021 7:53 am
iSpecimen Launches Enhanced Custom Collection Service

Provides U.S. researchers new rapid delivery option to procure urgently needed human biospecimens for critical, time-sensitive research

PR Newswire

LEXINGTON, Mass., July 29, 2021 /PRNewswire/ — iSpecimen Inc. (Nasdaq: ISPC), an online marketplace for human biospecimens (“iSpecimen” or the “Company”), today announced that it has enhanced its custom biofluids collection service to offer life sciences organizations faster delivery of urgently needed research samples.

iSpecimen’s Enhanced Custom Collection Service, originally intended to compensate for biospecimen collection challenges encountered during the height of the COVID-19 pandemic, was established as a way to supplement human biospecimens provided by the Company’s vast network of contracted global suppliers, particularly during time-sensitive situations. The rapid-response collection service is intended, in particular, to serve Boston-area researchers who need samples within hours, as well as other U.S.-based researchers who need specimens delivered overnight.

The enhanced service entails direct blood draws, saliva collection, and other forms of biofluid sample collections by qualified clinicians at iSpecimen headquarters. In pilot programs conducted during the third quarter of 2020, iSpecimen clinicians directly collected healthy normal samples of blood and saliva to pair with samples from diagnosed patients. Within hours of collections, iSpecimen delivered the samples to an array of biotech firms in the Boston area so they could continue developing new vaccines, treatments, cures, and diagnostics. The enhanced service is another way for customers to cost-effectively contend with the ebbs and flows related to their research and specimen supply.

“Necessity is the mother of invention and traditional collection opportunities, such as doctor visits and elective surgeries, were often unavailable during the COVID-19 lockdown. This required us to be creative so we could keep meeting researchers’ needs,” said Christopher Ianelli, MD, Ph.D., CEO and President of iSpecimen. “With an ongoing need for quickly delivered collections of fresh specimens, we’ve continued refining this process. Our Enhanced Custom Collection Service extends our ongoing mission of streamlining biospecimen procurement to advance medical research.”

iSpecimen is inviting Boston-area individuals to donate biospecimens, typically blood or saliva, for life sciences research. Donation is open to anyone, whether an individual is generally healthy or has a diagnosed condition that is likely being addressed in medical research. For details on how to participate, please visit us online.

About iSpecimen

iSpecimen offers an online marketplace for human biospecimens, connecting life scientists in commercial and non-profit organizations with healthcare providers that have access to patients and specimens needed for medical discovery. Proprietary, cloud-based technology enables scientists to intuitively search for specimens and patients across a federated partner network of hospitals, labs, biobanks, blood centers, and other healthcare organizations. For more information about iSpecimen, please visit www.ispecimen.com.

Forward-Looking Statements

This press release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such forward-looking statements are characterized by future or conditional verbs such as “may,” “will,” “expect,” “intend,” “anticipate,” believe,” “estimate” and “continue” or similar words. You should read statements that contain these words carefully because they discuss future expectations and plans, which contain projections of future results of operations or financial condition or state other forward-looking information.

Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to the risks factors contained in the Company’s filings with the Securities and Exchange Commission, which are available for review at www.sec.gov. Forward-looking statements speak only as of the date they are made. New risks and uncertainties arise over time, and it is not possible for the Company to predict those events or how they may affect the Company. If a change to the events and circumstances reflected in the Company’s forward-looking statements occurs, the Company’s business, financial condition and operating results may vary materially from those expressed in the Company’s forward-looking statements.

Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise.

For further information, please contact:

Investor Contact
KCSA Strategic Communications
Allison Soss / Scott Eckstein
[email protected]

Media Contact

Kaitlynn Cooney

For iSpecimen
[email protected]

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SOURCE iSpecimen Inc.

Posted on July 29, 2021 7:50 am
Lumen launches new on-net subsea fiber route between U.S. and France

The push for international bandwidth grows; Lumen offers diverse, low-latency solutions via trans-Atlantic route on the Dunant subsea cable

PR Newswire

DENVER, July 29, 2021 /PRNewswire/ — In the wake of COVID-19, almost 70% of organizations using cloud services say they plan to increase their cloud spending. This is creating a spike in the demand for cloud connectivity services and data worldwide. The need for international bandwidth is already more than doubling every two years, with internet growth increasing rapidly on all continents.

“Lumen’s decision to increase their capacity across the Atlantic makes a world of sense.”

To help meet the growing need for more data flow and online content between the U.S. and Europe, Lumen Technologies (NYSE: LUMN) is significantly increasing its network capacity across the Atlantic Ocean by adding a new on-net route utilizing the Google Dunant subsea cable system between Richmond, Virginia and Paris, France.

“No other subsea cable route comes close to the capacity levels traversing the trans-Atlantic,” said TeleGeography research director Alan Mauldin. “Looking forward, there’s no question that tremendous new capacity will be required on this route. Lumen’s decision to increase their capacity across the Atlantic makes a world of sense.”

Providing complete network diversity to support global organizations

The Dunant trans-Atlantic cable connects the flourishing Virginia data center corridor in the U.S. with Saint-Hilaire-de-Riez on the French Atlantic coast. The new Lumen route on the Dunant system will offer optional diversity, latency, and custom routing guarantees. This will give international businesses and wholesale providers a secure, diverse trans-Atlantic network option connecting to the Lumen global 450,000 route fiber mile network.

“We’re in an era of ‘more’. The need for more online content, more applications and more cloud services between continents won’t diminish anytime soon,” said Laurinda Pang, Lumen president, global customer success. “That’s why this subsea infrastructure is so important. The capacity Lumen will be offering on the Dunant subsea cable can be scaled to meet increased customer broadband demands for years to come. With our comprehensive trans-Atlantic subsea portfolio, customers will enjoy diverse routes, low latency and a connection to one of the most interconnected and deeply peered networks in the world.”

Providing the Virginia data center hub with a European gateway

Establishing a new subsea route provides the greater Washington, D.C., data center corridor with a direct and efficient connection to Europe, including Paris and Frankfurt. Lumen also just recently announced the expansion of its fiber network in Europe, strengthening its service capabilities in France, Switzerland and Spain.

Lumen has owned and operated global subsea networks for more than 20 years and continues to support market growth where businesses need it most.

Lumen plans to deliver services on the Dunant subsea system in September.

About Lumen Technologies:
Lumen is guided by our belief that humanity is at its best when technology advances the way we live and work. With approximately 450,000 route fiber miles and serving customers in more than 60 countries, we deliver the fastest, most secure platform for applications and data to help businesses, government and communities deliver amazing experiences. Learn more about the Lumen network, edge cloud, security, communication and collaboration solutions and our purpose to further human progress through technology at news.lumen.com/home, LinkedIn: /lumentechnologies, Twitter: @lumentechco, Facebook: /lumentechnologies, Instagram: @lumentechnologies and YouTube: /lumentechnologies. Lumen and Lumen Technologies are registered trademarks in the United States.

Forward-Looking Statements
Except for historical and factual information, the matters set forth in this release identified by words such as “will,” “estimates,” “expects,” “anticipates,” “believes,” “plans,” “intends,” and similar expressions are forward-looking statements. These forward-looking statements are not guarantees of future results and are based on current expectations only, are inherently speculative, and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control. Actual events and results may differ materially from those anticipated, estimated, projected or implied by us in those statements if one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect. Factors that could affect actual results include but are not limited to: the continued increase in demand for cloud services and data worldwide; our ability to safeguard our network, and to avoid the adverse impact of possible security breaches, service outages, system failures, or similar events impacting our network or the availability and quality of our services; the effects of new, emerging or competing technologies, including those that could make our products less desirable or obsolete; the demand for new capacity on the Trans-Atlantic route on the Dunant subsea cable; whether we continue to make investments in global network connections at current levels or at all; our ability to deliver services on the Dunant subsea system by the projected time horizons; and other risks referenced from time to time in our filings with the Securities and Exchange Commission (“SEC”). For all the reasons set forth above and in our SEC filings, you are cautioned not to unduly rely upon our forward-looking statements, which speak only as of the date made. We undertake no obligation to publicly update or revise any forward-looking statements for any reason, whether as a result of new information, future events or developments, changed circumstances, or otherwise. Furthermore, any information about our intentions contained in any of our forward-looking statements reflects our intentions as of the date of such forward-looking statement, and is based upon, among other things, existing regulatory, technological, industry, competitive, economic and market conditions, and our assumptions as of such date. We may change our intentions, strategies or plans (including our plans expressed herein) without notice at any time and for any reason.

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SOURCE Lumen Technologies

Posted on July 29, 2021 7:45 am
Mogo Subsidiary Carta Powering Public Health Initiatives in the United Kingdom

Mogo Subsidiary Carta Powering Public Health Initiatives in the United Kingdom

VANCOUVER, British Columbia–(BUSINESS WIRE)–Mogo Inc. (NASDAQ:MOGO) (TSX:MOGO) (“Mogo” or the “Company”), a digital payments and financial technology company, announces that its wholly owned subsidiary, Carta Worldwide (“Carta”), a modern card issuing platform, is powering key public sector payment initiatives in the United Kingdom (“UK”) in partnership with leading payments solutions provider allpay, the UK market leader of payment services within the public and social housing sector.

Among the recent initiatives is a program with the National Health Services through which prepaid cards, powered by technology from allpay and Carta, are being distributed across England to facilitate electronic payments to support health initiatives. The companies are also supporting the UK ‘Healthy Start’ program, providing new mothers with electronic payment capability to purchase essential food for their young children.

“Throughout Mogo’s history, we have been working to democratize and simplify access to financial services through technology, and we’re thrilled that our Carta payments platform is helping to power these large-scale and important public heath initiatives in partnership with allpay,” said Greg Feller, President of Mogo.

Leveraging its modern open-API issuer platform, Carta enables the issuance of virtual and physical cards to support innovative solutions for businesses and organizations that are looking to deploy payment products and embedded financial services.

Tony Killeen, CEO, allpay Limited said: “The digitization of public health payments is creating an incredible impact in the UK. We are proud to see the successful roll-out of these initiatives. Carta has been a critical partner, allowing us to focus on delivering this best-in-market payment solution.”

About Mogo

Mogo is empowering its more than 1.5 million members with simple digital solutions to help them get in control of their financial health. Through the Mogo app, consumers can access a digital spending account with Mogo Visa* Platinum Prepaid Card featuring automatic carbon offsetting, easily buy and sell bitcoin, and get free monthly credit score monitoring, ID fraud protection, and personal loans. Mogo’s wholly-owned subsidiary, Carta Worldwide, also offers a digital payments platform that powers the next-generation card programs from innovative fintech companies in Europe, North America and APAC. To learn more, please visit mogo.ca or download the mobile app (iOS or Android).

View source version on businesswire.com: https://www.businesswire.com/news/home/20210729005580/en/

Craig Armitage

Investor Relations

[email protected]

(416) 347-8954

US Investor Relations Contact

Lytham Partners, LLC

Ben Shamsian

New York | Phoenix

646-829-9701

[email protected]

KEYWORDS: North America United States United Kingdom Europe Canada Arizona New York

INDUSTRY KEYWORDS: Technology Finance Consulting Banking Other Technology Professional Services Other Health Health Data Management Other Professional Services

MEDIA:

Posted on July 29, 2021 7:41 am
GOL announces Investor Update

PR Newswire

SÃO PAULO, July 29, 2021 /PRNewswire/ — GOL Linhas Aéreas Inteligentes S.A. (NYSE: GOL and B3: GOLL4), (“GOL” or “Company”), Brazil’s largest domestic airline, provides an Investor Update. All information is presented in Brazilian Reais (R$). The information below is preliminary and unaudited.

The operational resumption that started in the middle of 2Q21 is expected to continue at an increasing pace as the population’s immunization intensifies, and as we approach the summer season, therefore, GOL’s current capacity planning scenario for 2H21 assumes a 46% increase over 2H20. To adapt costs to current levels of sales and demand, GOL will operate 102 aircraft in its network at the end of the period (versus 110 previously projected), which will represent 133% of the average fleet operated in 2H20 and 56% higher than 1H21. Revenue for the six-month period ending December 31, 2021 is expected to increase approximately 85% compared to the same period last year.

GOL expects to end 2H21 with R$4.2 billion in liquidity (versus R$4.5 billion previously projected) and R$15.3 billion in adjusted net debt (versus R$14.8 billion previously projected). Several important initiatives are relevant to ensure that the Company maintains liquidity at the levels expected for the end of 2021.

With the objective of assisting investors and analysts in understanding how GOL is approaching its short-term planning, the Company is also sharing the metrics below:

Metrics

3Q21E

2H21E

Preliminary

Revised

Brazil GDP Variation¹ vs 2020 (%)

+7.7%

+2.9%

+3.9%

Domestic Routes Served (average)

~133

~159

~168

Average Operating Fleet (EoP)

~75

~110

~102

ASK Total (bi)

~7.3

18.8

~17.2

Load Factor (%)

~82%

~80%

~80%

Operating CASK Ex-fuel² vs 2020

Down ~6%

Down ~8%

Down ~12%

Gross Global Scope 1 emissions (000 m t CO2)

~524.1

~1,395.0

~1,215.1

Total Fuel Consumed (1,000 liters per RPK)

~34.2

~36.1

~34.3

Greenhouse Gas Emissions/Flight Hour (t CO2)

~8.5

~7.9

~8.5

Net Operating Revenues (R$ BN)

~1.8

~6.0

~5.4

Other Revenue (cargo, loyalty, other)

~12% of revenues

~7% of revenues

~8% of revenues

EBITDA² (R$ bi)

~0.4

~2.0

~1.7

CAPEX (R$ MM)

~0.1

~0.3

~0.3

Total Liquidity³ (R$ BN)

~3.4

~4.5

~4.2

Net Debt⁴ (R$ BN)

~15.0

~14.8

~15.3

Net Debt / LTM EBITDA Ratio^4,5,6 (x)

~2.9x

~3.0x

~3.0x

(1) Versus the same period last year; Source: Brazilian Central Bank. (2) Excluding non-operating expenses and depreciation related to fleet idleness and personnel-related costs of approximately R$807 million in 3Q21, R$922 million in 3Q20, R$1.7 billion in 2H21 and R$1.6 billion in 2H20. (3) Cash and cash equivalents, restricted cash, accounts receivables and deposits (does not include unencumbered assets). (4) Excluding perpetual bonds and exchangeable notes. (5) Pro-forma, excluding non-operating expenses and depreciation, (6) 4Q21E EBITDA annualized.

Investor Relations

[email protected]
www.voegol.com.br/ir
+55(11) 2128-4700

Media Relations

Becky Nye, Montieth & Company
[email protected]
+1 646 864 3517

About GOL Linhas Aéreas Inteligentes S.A.

GOL serves more than 36 million passengers annually. With Brazil’s largest network, GOL offers customers more than 750 daily flights to over 100 destinations in Brazil and in South America, the Caribbean and the United States. GOLLOG’s cargo transportation and logistics business serves more than 3,400 Brazilian municipalities and more than 200 international destinations in 95 countries. SMILES allows over 16 million registered clients to accumulate miles and redeem tickets to more than 700 destinations worldwide on the GOL partner network. Headquartered in São Paulo, GOL has a team of approximately 14,000 highly skilled aviation professionals and operates a fleet of 127 Boeing 737 aircraft, delivering Brazil’s top on-time performance and an industry leading 20-year safety record. GOL has invested billions of Reais in facilities, products and services and technology to enhance the customer experience in the air and on the ground. GOL’s shares are traded on the NYSE (GOL) and the B3 (GOLL4). For further information, visit www.voegol.com.br/ir.

Disclaimer
The information contained in this press release has not been subject to any independent audit or review and contains “forward-looking” statements, estimates and projections that relate to future events, which are, by their nature, subject to significant risks and uncertainties. All statements other than statements of historical fact contained in this press release including, without limitation, those regarding GOL’s future financial position and results of operations, strategy, plans, objectives, goals and targets, future developments in the markets in which GOL operates or is seeking to operate, and any statements preceded by, followed by or that include the words “believe”, “expect”, “aim”, “intend”, “will”, “may”, “project”, “estimate”, “anticipate”, “predict”, “seek”, “should” or similar words or expressions, are forward-looking statements. The future events referred to in these forward-looking statements involve known and unknown risks, uncertainties, contingencies and other factors, many of which are beyond GOL’s control, that may cause actual results, performance or events to differ materially from those expressed or implied in these statements. These forward-looking statements are based on numerous assumptions regarding GOL’s present and future business strategies and the environment in which GOL will operate in the future and are not a guarantee of future performance. Such forward-looking statements speak only as at the date on which they are made. None of GOL or any of its affiliates, officers, directors, employees and agents undertakes any duty or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. None of GOL or any of its affiliates, officers, directors, employees, professional advisors and agents make any representation, warranty or prediction that the results anticipated by such forward-looking statements will be achieved, and such forward-looking statements represent, in each case, only one of many possible scenarios and should not be viewed as the most likely or standard scenario. Although GOL believes that the estimates and projections in these forward-looking statements are reasonable, they may prove materially incorrect and actual results may materially differ. As a result, you should not rely on these forward-looking statements.

Non-GAAP Measures
To be consistent with industry practice, GOL discloses so-called non-GAAP financial measures which are not recognized under IFRS or U.S. GAAP, including “Net Debt”, “Adjusted Net Debt”, “total liquidity” and “EBITDA”. The Company’s management believes that disclosure of non-GAAP measures provides useful information to investors, financial analysts and the public in their review of its operating performance and their comparison of its operating performance to the operating performance of other companies in the same industry and other industries. However, these non-GAAP items do not have standardized meanings and may not be directly comparable to similarly-titled items adopted by other companies. Potential investors should not rely on information not recognized under IFRS as a substitute for the GAAP measures of earnings or liquidity in making an investment decision.

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SOURCE GOL Linhas Aéreas Inteligentes S.A.